For a monopsonist, marginal factor cost exceeds the wage rate since
A) more workers have to be paid the prevailing wage rate.
B) the supply of labor is perfectly elastic.
C) when new workers are hired the wage rate must be increased for all workers and not just for the additional workers.
D) the labor demand is downward sloping.
C
You might also like to view...
If the government uses fiscal policy to close a recessionary gap,
A) taxes must be cut by more than the gap because of the tax multiplier. B) government expenditure must be increased by more than the gap because of the government expenditure multiplier. C) taxes must be raised by more than the gap because of the tax multiplier. D) government expenditure can be increased by less than the gap because of the government expenditure multiplier. E) taxes can be raised by less than the gap because of the tax multiplier.
What are the four subcategories of investment expenditures?
What will be an ideal response?
Briefly describe the three prominent schools of thought in political philosophy. Identify one of the most well-known philosophers in each school
Refer to Figure 3.1. If one of the graphs represents the total benefit of an activity, which other graph best represents the marginal benefit of the activity?
B. B
C. C
D. D