Johnson's Piggery is the only employer in town. Johnson employs 500 workers and pays them each a wage of $8 . The MRP of the 500th worker is $10 . Johnson's return to monopsony power is
a. 2 percent
b. equal to the marginal labor cost
c. $4,000
d. $9
e. $1,000
E
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The slope of a producer's production possibilities frontier represents the producer's
A) sunk costs of production. B) average costs of production. C) marginal costs of production. D) total costs of production.
Based on the table showing a summary of fiscal policy tools, the prescription for high unemployment is ______.
a. increasing aggregate demand through expansionary policy
b. decreasing aggregate demand through contractionary policy
c. increasing income and business tax rates
d. decreasing government transfer payments and purchases
Why do both developed and less-developed countries protect clothing and textiles heavily?
What will be an ideal response?
If the price were $5 each, her consumer surplus would be
Table: Demand and Utility Schedules for packs of scented candles
A. $31.
B. $20.
C. $18.
D. $6.