A monopolist will hire fewer workers than a competitive firm, other things being equal, because
A. the monopolist must take account of the declining product price that must be charged in order to sell more units of the product.
B. the monopolist exploits labor and other types of producers do not.
C. the monopolist is more efficient.
D. diminishing marginal productivity of labor is more severe for a monopolist.
Answer: A
You might also like to view...
In the long run, inflation is caused by
A) aggressive labor unions. B) greedy monopolists. C) growth in the money supply. D) global warming.
Which of the following statements about private and social costs is TRUE?
A) Social costs include externalities. B) Private cost do not include externalities. C) Social costs are never smaller than private costs. D) All of the above.
Other things the same, if the central bank decreases the rate at which it increases the money supply, then in the long run
a. the short-run Phillips curve shifts right. b. the short-run Phillips curve shifts left. c. the long-run Phillips curve shifts right. d. the long-run Phillips curve shifts left.
Refer to the above figure. The figure shows the cost structure of a firm producing an information product. Which curve would represent the marginal cost for an information product?
A. Curve 1 B. Curve 2 C. Curve 3 D. none of these