If a firm buys some labor in a competitive market and some labor as a monopsonist, the firm is most likely to
A) pay the same wage to both types of labor.
B) pay a lower wage to the labor purchased in the competitive market.
C) pay a higher wage to the labor purchased in the competitive market.
D) not exercise any of its monopsony power.
C
You might also like to view...
Short run expenditure patterns may change very little when income declines
Indicate whether the statement is true or false
For a given product, income elasticity of demand relates the percentage change in:
a. quantity demanded to the percentage change in income. b. quantity demanded to the absolute change in income. c. income to the percentage change in price. d. price to the absolute change in quantity demanded. e. income to the percentage change in quantity available for sale.
Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly
a. is often not in the best interest of society. b. maximizes total economic well-being. c. is efficient. d. benefits consumers more so than the producer.
One of the most important economic resources is money.
Answer the following statement true (T) or false (F)