For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because
A) the monopsonist will take advantage of labor and offer them lower wages.
B) in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered.
C) in order for the monopsonist to hire more labor the monopsonist must also purchase more capital.
D) the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers.
D
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The number of satellite dishes increased by 50 percent when the average monthly price of cable TV increased by 10 percent. Assuming that other factors are held constant, satellite dishes and cable TV are classified as:
a. complements. b. unrelated goods. c. substitutes. d. social goods.
If the supply of a good is relatively elastic, this means that the quantity supplied of the good is
a. not very sensitive to the price of the good. b. highly sensitive to the price of the good. c. unrelated to the price of the good. d. none of the above.