Answer the following statements true (T) or false (F)
1. In a purely competitive labor market, an individual firm must pay a rising price for labor if it wants to acquire more labor.
2. If a firm must pay a daily wage of $35 to hire 11 workers, and a daily wage of $40 to hire 12 workers, its marginal resource cost of hiring the twelfth worker is $40.
3. A monopsonist in the labor market tends to hire more workers than would be hired if the labor market were purely competitive.
4. A monopsonist faces an upsloping supply curve of labor, but it could face a horizontal demand curve for its product in the output market.
1. FALSE
2. FALSE
3. FALSE
4. TRUE
You might also like to view...
A pure monopoly will find that marginal revenue ________.
A. is less than price B. exceeds price C. is identical to price D. is sometimes greater and sometimes less than price
If monetary equilibrium were to occur
A) inflation would not occur. B) deflation would not occur. C) the price level would be stable. D) all of the above would be true. E) none of the above would be true.
Refer to Table 23-4. Given the consumption schedule in the table above, the marginal propensity to consume is
A) 0.5. B) 0.6. C) 0.75. D) 0.8.
Explain the forecast error, ut+1, in terms of: (1 ) Its equation (what it is equal to) (2 ) How it is used (3 ) Its accuracy
What will be an ideal response?