Why does a monopsonist's marginal expenditure curve lie above the labor supply curve?
What will be an ideal response?
To hire additional labor, the monopsonist must increase the wage paid to all units of labor. Thus, the marginal expenditure of the next unit of labor is the higher wage plus the wage increase paid to all previously hired labor.
Economics
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Usually the imposition of trade barriers affecting a particular good benefits ________ people domestically, each of whom gains a ________
A) a few; little B) a few; lot C) many; little D) many; lot
Economics
The original mission of the World Bank was to
A) provide capital to underdeveloped countries. B) provide capital to firms around the world. C) provide financial assistance for the reconstruction of war-damaged nations. D) help countries manage their exchange rates.
Economics