BigBiz, a local monopsonist, currently hires 50 workers and pays them $6 per hour. To attract an additional worker to its labor force, BigBiz would have to raise the wage rate to $6.25 per hour. What is BigBiz's marginal factor cost?
a. $6.25 per hour.
b. $12.50 per hour.
c. $18.75 per hour.
d. $20 per hour.
c
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According to this Application, in recent years the European Union has reformed its agriculture policies by reducing or eliminating minimum prices. Ceteris paribus, these policy reforms would ________ excess supply by ________ prices
A) increase; lowering B) increase; raising C) reduce; lowering D) reduce; raising
IBM undertook a massive restructuring program to decentralize into six smaller decision-making groups in order to reduce economies of scale
a. True b. False
If you had a windfall of $5,000 in the present time period and you save some of it, you're saving behavior would likely be due to the fact that
A. your indifference curves for present and future are horizontal. B. your marginal utility of present income falls as your income goes up. C. the extra income changes the slope of your time preference indifference curves making then steeper. D. your indifference curves for present and future income are vertical.
The Herfindahl-Hirschman Index approaches ________ when a market consists of a large number of firms of relatively equal size
A) one B) zero C) 100 D) 500