In the above figure, the curve labeled MCL is the marginal cost of labor curve and is used in a
A) competitive situation in which individual firms cannot influence the wage rate they must pay.
B) competitive situation in which skill differentials create a difference between what a firm must pay labor versus the wage at which households are willing to supply labor.
C) monopsony situation in which the firm can influence wages by how much labor it hires, so that the wage rate received by workers is less than the marginal cost of labor.
D) monopsony situation in which the firm can influence wages by how much labor it hires, so that the wage rate received by workers is greater than the marginal cost of labor.
C
You might also like to view...
Answer the next question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. Government SpendingTax RevenuesGDPYear 1$450$425$2,000Year 25004503,000Year 36005004,000Year 46406205,000Year 56805804,800Year 66006205,000As a percentage of GDP, the budget deficit was ________ in year 3.
A. 12.5% B. 2.5% C. 0% D. 15%
Perfect central planning is nearly impossible for all of these reasons except: a. production processes between industries are often interdependent
b. some processes must be decided together, and not individually, because of their interdependence. c. if the output target for one industry is adjusted, many others must also be adjusted. d. all of these reasons are correct.
Which of the following is an example of an adverse supply shock?
A) a nationwide drought lasting for many months B) an outbreak of war among several of the Middle Eastern oil-producing countries C) an influenza virus that affects 50 percent of the labor force over a two month period D) a, b, and c E) a and c
Which of the following is correct?
a. NCO = NX b. NCO + I = NX c. NX + NCO = Y d. Y = NCO - I