If a minimum wage is established, a monopsonist faces
A. an upward sloping supply of labor at all quantities of labor.
B. a horizontal supply of labor at the minimum wage and the downward sloping portion of the labor demand curve below minimum wage.
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 downward sloping supply of labor at all quantities of labor.
Answer: C
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Juanita, a lawyer, can type faster than Jill, her secretary. Jill, on the other hand, does not have the ability or skills to practice law. Applying the principles of international trade to this situation, an economic consultant advises Juanita to
a. fire Jill, practice law and do the typing because she's better at both b. practice law and leave all the typing to Jill c. divide her time equally between typing and practicing law d. quit law and concentrate on typing because that's her comparative advantage e. quit law and concentrate on typing because that's her absolute advantage
Figure 7-10
In Figure 7-10, the curve labeled C is
a.
average fixed cost.
b.
average total cost.
c.
average variable cost.
d.
marginal cost.
Based on the graphic for perfect competition versus monopoly, the producer surplus for perfect competition is ______ the welfare for perfect competition.
a. greater than
b. less than
c. equal to
d. the opposite of
In the United States, income taxes are collected from two different sources: households and corporations
Indicate whether the statement is true or false