Suppose a monopsonist hires its second worker and this hiring has a marginal factor cost of $75 per day. If the market wage is now $62.50 per day, what was the first employee earning when she worked alone?

a. $40.
b. $45.
c. $50.
d. $55.
e. $60.


c

Economics

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Refer to the below graph of the market for low-skilled labor. Sd is the supply of domestic resident workers, and St is the total supply of labor including undocumented workers. What is the equilibrium wage rate and equilibrium employment if there were no illegal immigration?


A. $14 and 142M, respectively

B. $13 and 135M, respectively

C. $14 and 120M, respectively

D. $17 and 135M, respectively

Economics

Which of the following is likely to use the concepts of game theory?

A) Deciding on how much to spend on monthly groceries B) Exit decision of competitive firms in the long run C) International trade negotiation D) Pricing decision of a firm operating in a competitive market

Economics

The total amount of spending on nonresidential structures, equipment, software, residential structures, and business inventories in a given period of time is called:

A) net exports. B) government consumption and investment. C) gross private domestic investment. D) personal consumption.

Economics

Barton & Matthews Corp, a law firm, announces its acquisition of Fronton Corp Which of the following is likely to occur as a result of this acquisition? a. The value of the Herfindahl-Hirschman Index for the legal services industry will decrease. b. The value of the Herfindahl-Hirschman Index for the legal services industry will increase. c. The market share of each firm in the legal services

industry will increase. d. The market share of each firm in the legal services industry will decrease.

Economics