Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists pays a higher wage?
A) Firm A
B) Firm B
C) They both pay the same.
D) It is impossible to tell which pays a higher wage.
D
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The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________
A) increases; shifts the demand curve for golf balls rightward B) decreases; shifts the demand curve for golf balls leftward C) decreases; creates a movement up along the demand curve for golf balls D) increases; creates a movement down along the demand curve for golf balls
Keynes believed that changes in autonomous spending were dominated by unstable fluctuations in ________, which are influenced by emotional waves of optimism and pessimism—factors he referred to as "animal spirits."
A) unplanned investment spending B) actual investment spending C) planned investment spending D) autonomous consumer expenditures
The price elasticity of demand for a vertical demand curve is:
a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic. e. inelastic.
Which of the following statements is true?
A. A tariff is a physical limit on the quantity of a good allowed to enter a country. B. An embargo is a tax on an imported good. C. A quota is a law that bars trade with another country. D. When a nation exports more than it imports it is running a balance of trade surplus.