The monopsonistic employer hires more workers until marginal:

a. physical product is zero.
b. revenue product equals marginal factor cost.
c. revenue product equals the wage.
d. physical product equals the wage.
e. physical product equals marginal factor cost

b

Economics

You might also like to view...

The price ceiling depicted in the above figure results in

A) consumer surplus increasing from $30 thousand to $34.5 thousand. B) producer surplus decreasing from $24 thousand to $6 thousand. C) a deadweight loss of $16 thousand. D) Both answers A and B are correct.

Economics

The rational-expectations hypothesis implies that there is no need for government stabilization policies.

Answer the following statement true (T) or false (F)

Economics