The return to monopsony power refers to the
a. difference between the marginal revenue product and the wage rate of the last worker hired multiplied by the number of workers employed
b. fact that the marginal cost of labor for a monopsony is lower than the wage rate
c. wage rate minus the marginal revenue product
d. higher marginal revenue product of labor that a worker produces under monopsony
e. fact that a monopsonist can choose both the wage rate and the number of workers hired simultaneously
A
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An increase in supply will cause a decrease in price, which will cause an increase in demand
a. True b. False Indicate whether the statement is true or false
P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
Suppose QRS-TV enters into an agreement with P-TV that gives QRS-TV the exclusive right to air a reality show during this time slot. QRS-TV would have to pay P-TV ________ in order to persuade P-TV to enter into this agreement.
A. more than zero, but less than $5 million B. at least $10 million C. nothing D. at least $5 million
The figure below depicts the IS-LM-FE model with floating exchange rates.
Following the shift of the economy from point A to point B, the shift of the IS curve from IS1 to IS2 was caused by
A. a worsening of international price competitiveness. B. an improvement in the current account position. C. official intervention in the foreign exchange market. D. a contractionary monetary policy.
Spot markets are an INEFFICIENT way for the firm to purchase inputs if:
A. profit sharing is used to compensate managers. B. opportunism is a problem. C. opportunism is a problem and suppliers engage in hold-up. D. suppliers engage in hold-up.