For the monopsonist, marginal expenditure is greater than the wage rate because the monopsonist
A) pays a wage higher than that paid in a competitive market.
B) chooses the perfectly competitive quantity of labor.
C) must increase the wage to all units of labor to attract more units of labor.
D) must take the wage as given by the market.
C
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The problem with adopting a normal profit pricing policy for a natural monopoly is that ________.
A. profits will be positive B. losses will be large and sustained C. it is not allocatively efficient D. it is allocatively efficient
Your textbook authors use the urban traffic example to show
A) why economics cannot explain non-financial processes. B) how social cooperation emerges when people act under generally accepted rules. C) how a smooth flow of traffic can only be achieved by detailed, central planning. D) how a smooth flow of traffic can only be achieved if people drive in the public interest.
In simultaneous move Bayesian games, a player's beliefs are fully given by the probability distribution used by "Nature" to assign types.
Answer the following statement true (T) or false (F)
If the purpose of a tax is to raise revenue, it would be best for government to place the tax on which of the following goods?
a. a non-essential good, such as holiday travel b. a good whose demand curve is highly elastic c. a good that has several close substitutes d. a good whose demand curve is highly inelastic e. a good whose demand curve is unit elastic