For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A) there is not good factor substitution in a monopsony.
B) the wage rate offered the newest employee must be paid to all workers.
C) the industry will be a closed shop.
D) a normal rate of return must be paid to the owner.
B
Economics
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If UIP holds, the foreign interest rate is 6%, and the home currency is expected to appreciate by 2%, then the home interest rate is:
a. 10% b. 8% c. 4% d. 3%
Economics
A perfectly inelastic demand curve
a. Is a horizontal curve parallel to the horizontal axis b. Has an elasticity of demand between 0 and 1 c. Represents the demand curve of a product with no close substitutes d. None of the above
Economics