Cannon Mills used to be virtually the only employer in Kannapolis, North Carolina. What is the name for a single hirer of labor, and how do wages and the number of jobs available compare to a competitive labor market?
Monopsonists hire fewer workers and pay lower wages than comparable competitive firms. For these firms, MLC is above S of labor. Labor input is where MLC crosses MRP, which must be at a lower input level. Wage equals the minimum needed to hire this smaller supply of workers, which must be less than the competitive wage that would lead to more workers hired.
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The federal funds market is the market in which:
a. banks borrow from the Fed. b. bank customers borrow from their banks c. banks borrow from each other. d. the federal government borrows from the Fed. e. the federal government borrows from members of the general public.
In 2001, Costa Rican real GDP grew by 5 percent, well above the 2.5 percent trend line of its long-run annual average economic growth rate. In all probability, Costa Rica was in its ________ phase of the business cycle
a. recession b. recovery c. downturn d. prosperity e. trough