Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market
If the price of coal increases, then the firm's quantity of labor demanded ________ and the equilibrium wage ________. A) decreases, decreases
B) decreases, increases
C) increases, decreases
D) increases, increases
D
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Where along the long-run average total cost curve will an efficient firm try to produce in the long run?
a. Along the downward-sloping portion when there are economies of scale because cost per unit of output is decreasing at that level of production. b. Along the upward-sloping portion when there are diseconomies of scale because a firm will sell more output at that level of production. c. When there are constant returns to scale because this is the minimum efficient level of production, and cost per unit of output is at its lowest.
Comparing Tobin's model of the speculative demand for money with Keynesian speculative demand
A) both models imply that individuals hold only money or only bonds. B) the Keynesian model implies individuals diversify their asset holdings, while the Tobin model predicts that individuals hold only money or only bonds. C) the Tobin model implies individuals diversify their asset holdings, while the Keynesian model predicts that individuals hold only money or only bonds. D) both models imply that individuals diversify their asset holdings.