A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at which

A) MFC = MRPm.
B) a perfectly elastic labor supply = MRP.
C) a perfectly inelastic labor supply = perfectly inelastic labor demand.
D) where supply of labor = demand for labor.

A

Economics

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The multiplier is equal to

a. the reciprocal of MPC. b. the reciprocal of MPS. c. MPC + MPS. d. MPC/MPS.

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