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 pays a higher wage?

Real GDP is calculated because

a. it is a much better measure of economic behavior than nominal GDP b. the value of the dollar is increasing c. it allows us to make comparisons between countries d. nominal GDP has no theoretical foundation e. nominal GDP is corrected for inflation

Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. Other things equal, a shift of the supply curve from S 0 to S 1 might be caused by a(n):

A. increase in the wage rates paid to laborers employed in the production of X.
B. government subsidy per unit of output paid to firms producing X.
C. decline in the price of the basic raw material used in producing X.
D. increase in the number of firms producing X.