A monopsonistic employer in an unorganized (nonunion) labor market will:
A. pay a wage rate less than labor's MRP.
B. pay the same wage rate but hire fewer workers than if the market was purely competitive.
C. hire the number of workers indicated by the intersection of the MRC and the labor supply curves.
D. pay a wage rate in excess of labor's MRP.
Answer: A
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S2 (point B)
If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good), the equilibrium could move to which point? A) A B) B C) C D) E
Last year, Casey grew fresh vegetables, which she sold at her local farmers market, but this year, Casey did not plant any vegetables and went to work at a bank instead. Which of the following best explains Casey's career change?
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