To maximize its profits, a monopsonist will hire labor the quantity of labor at which marginal revenue product of labor
a. is downward sloping and equal to the market wage rate.
b. is downward sloping and equal to its marginal labor cost.
c. minus marginal labor cost is maximized.
d. is maximized.
b. is downward sloping and equal to its marginal labor cost.
You might also like to view...
Toyota's just-in-time system is an example of
A) backward (upstream) integration. B) quasi-vertical integration. C) using transfer pricing to avoid price controls. D) horizontal, downstream integration.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.
For a monopolistically competitive firm, the demand curve
A) is a horizontal line. B) has a positive slope. C) is vertical. D) has a negative slope. E) is the same as the marginal revenue curve.
The higher the after-tax wage, the greater the quantity of labor supplied.
Answer the following statement true (T) or false (F)