Schleppsi, a soft drink maker, is a monopsonist in the county where it manufactures its product. Suppose the total labor cost per week to the firm is $35,000 with 99 workers and the total labor cost with 100 workers is $36,000 . What will the weekly wage rate be if Schleppsi hires the 100th worker?
a. $35
b. $36
c. $100
d. $350
e. $360
E
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A cigar factory employs 20 workers and produces 1,000 cigars a day. The company reduces the workforce to 19 workers and produces 912 cigars a day. The 20th worker:
A. had a marginal product of 88 cigars. B. must have had a lower marginal product than the 19th worker. C. caused average product to fall. D. All of these are true.
A profit-maximizing firm in a monopolistically competitive industry sells its product at a price:
A. that exceeds marginal cost. B. that exceeds average variable cost. C. equal to average variable cost. D. equal to marginal cost.
In which market structure does a firm have the LEAST influence over the market price?
A) monopoly B) monopolistic competition C) oligopoly D) perfect competition
A barrier to entry
A) makes it illegal for firms to enter the industry. B) can be thought of as unrelated to monopoly. C) slows or even prevents entry into a market. D) usually takes the form of a cartel.