A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost is
A. $10.00.
B. $15.10.
C. $10.10.
D. ten cents.
Answer: B
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Why might an economist argue that it could be damaging to the economic growth of a nation if it focused mostly on the production of consumer goods?
What will be an ideal response?
The difference in wages that results from nonmonetary characteristics of different jobs is called the
Exhibit 9-6 Two-Firm Payoff Matrix
?
Assume costs are identical for the two firms in Exhibit 9-6. If both firms were allowed to form a cartel and agree on their prices, equilibrium would be established by:
A. Widget Co. charging the low price and Ajax Co. charging the high price. B. Widget Co. charging the high price and Ajax Co. charging the low price. C. Widget Co. charging the low price and Ajax Co. charging the low price. D. Widget Co. charging the high price and Ajax Co. charging the high price.
Answer the following statements true (T) or false (F)
1. The optimal quantity of a public good is where the total benefits from it are equal to the total costs of producing it. 2. If car makers are required to install gadgets to improve the cleanliness of car-exhaust, we would expect the equilibrium quantity in the car market to decrease. 3. If the lumber companies are required to internalize the negative externalities of deforestation, then we should expect the equilibrium price of wooden furniture to decrease. 4. The Coase Theorem suggests that the government does not have to be involved at all in resolving a market failure due to externalities.