If a minimum wage is established, a monopsonist faces
A) an upward sloping supply of labor at all quantities of labor.
B) a downward sloping supply of labor at all quantities of labor.
C) a horizontal supply of labor at the minimum wage and the upward sloping portion of the labor supply curve above minimum wage.
D) a horizontal supply of labor at the minimum wage and the downward sloping portion of the labor demand curve below minimum wage.
Answer: C
You might also like to view...
What does international voluntary trade do?
(a) Exploits small countries (b) Benefits all trading partners (c) Places labor unions at an unfair disadvantage (d) Forces productive domestic firms to close their doors
If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by a(n):
a. increase in the supply of the good. b. increase in the demand for the good. c. decrease in the demand for the good. d. decrease in the supply of the good.
The Federal Reserve System has 12:
A. regional banks. B. basic functions. C. members on its Board of Governors. D. member banks.
Based on Table 9.2, the current account balance is
A) -2 percent of GNP. B) +2 percent of GNP. C) +4 percent of GNP. D) -4 percent of GNP.