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
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Refer to the production possibilities frontier in the figure above. If the country moves from point a to point c, the opportunity cost of the move is
A) 30 million capital goods. B) 20 million capital goods. C) 10 million capital goods. D) 10 million consumption goods.
Luis wonders why commercials appear more frequently at the end of a TV movie than at the beginning. Carol says that this pattern can be explained by the
a. share of the viewer's budget spent on TV watching b. length of the adjustment period c. cost of supplying additional minutes of the movie d. high elasticity of demand for watching the end of a TV movie e. availability of substitutes
Economists use the price index to eliminate year-to-year changes in GDP due solely to changes in: a. the exchange rate
b. the unemployment rate. c. fiscal spending. d. consumer demand. e. the price level.
The short run is that period in which firms: a. are free to vary all inputs
b. are able to vary some, but not all, inputs. c. can vary inputs, but only by varying all of their inputs in equal proportion. d. cannot increase production at all.