A monopsonistic employer:
A. has a perfectly elastic labor supply curve.
B. is necessarily a monopolist in the product market.
C. confronts a marginal resource (labor) cost that is greater than the wage rate.
D. confronts a marginal resource (labor) cost that is less than the wage rate.
Answer: C
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Marginal cost is the
a. change in total cost resulting from the purchase of one more unit of the variable input. b. change in total cost resulting from the production of one more unit of output. c. difference between total fixed cost and total variable cost. d. difference between total cost and total expenditure.
Refer to the table below and information. The average variable cost of the firm when 5 units of output are produced is:
The fixed cost of the firm is $500. The firm's total variable cost is indicated in the table.
A. $100
B. $200
C. $300
D. $400