Paying a wage to an employee that is lower than the employee's marginal revenue product is sometimes referred to as
A) illegal in most states.
B) monopolistic exploitation.
C) monopsonistic exploitation.
D) total exploitation.
Answer: C
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The personal distribution of income in the United States shows that
A) income is equally distributed. B) the poorest 20 percent of individuals receive approximately 20 percent of total income. C) the richest 20 percent of individuals receive approximately 50 percent of total income. D) the poorest 60 percent of individuals receive approximately 50 percent of total income. E) the richest 20 percent of individuals receive approximately 25 percent of total income.
In order for someone to switch from borrowing to saving when the interest rate falls, it must be that current consumption is an inferior good.
Answer the following statement true (T) or false (F)
When will an individual's indifference curves be identical with the iso-expected value lines?
a. Never. b. When the individual is risk averse. c. When the individual is risk neutral. d. When the individual is risk preferring.
A monopoly
a. can set the price it charges for its output and earn unlimited profits. b. takes the market price as given and earns small but positive profits. c. can set the price it charges for its output but faces a downward-sloping demand curve so it cannot earn unlimited profits. d. can set the price it charges for its output but faces a horizontal demand curve so it can earn unlimited profits.