A firm that was initially a monopsonist, but now has to buy from a competitive resource market will:
a. buy more amount of resources and pay a higher price for these resources.
b. buy the same amount of resources and pay a higher price for these resources.
c. buy less amount of resources and pay a lower price for these resources.
d. buy less amount of resources and pay a higher price for these resources.
e. buy more amount of resources and pay a lower price for these resources.
a
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Suppose the current exchange rate between the Mexican peso and the U.S. dollar is 12 pesos = $1
Mexico's GDP in dollars would be greater if the purchasing power parity exchange rate was used to convert pesos to dollars if you could buy the same goods in the United States with ________ as you can in Mexico with ________. A) $1; 12 pesos B) $10; 150 pesos C) $100; 900 pesos D) $1,000; 20,000 pesos
Explain how firms that each produce as efficiently as they can, may not be equally productive
What will be an ideal response?