For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because
A. the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers.
B. in order for the monopsonist to hire more labor the monopsonist must also purchase more capital.
C. in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered.
D. the monopsonist will take advantage of labor and offer them lower wages.
Answer: A
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a. True b. False Indicate whether the statement is true or false
If the opportunity cost of producing a good domestically is less than the opportunity cost of purchasing it on the world market, a country can gain by
A. decreasing production and increasing exports. B. increasing production and decreasing imports. C. increasing production and decreasing exports. D. decreasing production and increasing imports.
The real power within the Federal Reserve lies with the
A) Federal Reserve District banks. B) Board of Governors. C) Council of Economic Advisors. D) Council of Monetary Advisors.
A market failure occurs when
a. shortages or surpluses of some good cannot be eliminated. b. a private market cannot provide a good in socially efficient quantities. c. consumers' surplus falls to zero. d. property is privately owned and people behave competitively.