A price discriminating monopsonist could increase its profits by
a. paying the minimum wages possible.
b. hiring as little capital as possible.
c. paying lower wages to workers with inelastic supply of labor curves than to workers with elastic curves.
d. paying lower wages to workers with elastic supply of labor curves than to workers with inelastic curves.
c
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Suppose a student is attending your college on an athletic scholarship, and doesn't pay a penny for tuition. According to the economic way of thinking, the student's cost of attending college is
A) zero. B) bore completely by the college's athletic fund. C) positive, because the student sacrificed some other opportunity to attend your college. D) positive, because the student still needs food and housing. E) negative, because nobody really gains by trying to combine athletics with higher education.
When compared to the demand curve for only one variable input, the demand curve for a factor input when several inputs are variable is
A) less elastic. B) more elastic. C) vertical. D) horizontal.