A monopsonistic employer will pay a wage rate
A) less than the labor's MRP.
B) greater than the labor's MRP.
C) equal to the labor's MRP.
D) equal to MFC.
Answer: A
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If the economy is characterized by a certain and stable LM curve, then ________ target produces ________ fluctuations in aggregate output
A) an interest rate; smaller B) a money supply; smaller C) a money supply; larger D) an exchange rate; larger
The marginal revenue product can be expressed as the
A) additional revenue received from selling one more unit of product. B) increment to revenue received from one additional unit of input hired. C) marginal physical product of an input times the average revenue received from the sale of the product. D) average physical product of the input times the marginal revenue received from the sale of the final product.
Suppose Larry's Lariats produced 25,000 lassos and sold each for $10. What was the profit for this company?
A. $250,000 B. $25,000 C. $125,000 D. Cannot calculate profit without more information.
Because markets may not clear for several months or even several years, the classical model
a. is no longer considered valuable by mainstream economists b. has no value when explaining a situation where excess supply exists c. is irrelevant to any discussion of a market in which excess demand exists d. does a better job of explaining short-term fluctuations than long-run growth e. does a better job of explaining long-run growth than short-run fluctuations