Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists has a higher markup over wage?
A) Firm A
B) Firm B
C) They both pay the same.
D) It is impossible to tell which pays a higher wage.
B
Economics
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In the above figure, at point b on the demand curve, a price cut of one dollar will
A) increase total revenue. B) decrease total revenue. C) leave total revenue unchanged. D) have an indeterminate effect on total revenue.
Economics
If a marginal cost pricing rule is imposed on the firm in the figure above, the consumer surplus will be
A) zero. B) $800. C) $400. D) $200.
Economics