A price discriminating monopsonist could increase its profits by:
a. paying the minimum wages possible.
b. hiring as little capital as possible.
c. paying lower wages to workers with inelastic supply of labor curves than to workers with elastic curves.
d. paying lower wages to workers with elastic supply of labor curves than to workers with inelastic curves.
c
You might also like to view...
For the capital stock of the economy to remain constant over time the amount of investment:
A) must exceed the depreciated value of capital stock. B) must be less than the depreciated value of capital stock. C) must be equal to the depreciated value of capital stock times the savings rate of the economy. D) must be equal to the depreciated value of capital stock.
Regulating natural monopolies according to the "rate of return" criterion is likely to
a. reduce the incentive of firms to minimize cost. b. result in a smaller quantity of output than when the natural monopolist is unregulated. c. discourage the firms from investing resources in an effort to influence the decisions of the regulatory agency. d. increase the number of firms in the industry.