Lorna's Lumberyard is a monopsony. Lorna estimates that at a wage of $10, 100 workers would be willing to work for her. Similarly, at a wage of $12, 200 workers would be willing to work. Her marginal factor cost is:
A. $10.
B. $14.
C. $120.
D. $140.
Answer: B
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Which of the following statements is true about individuals and utility?
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What are the two reasons for the government to intervene in a market?