Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market. If the price of coal increases, then the firm's:

A) ME curve shifts leftward.
B) AE curve shifts rightward.
C) ME and AE curves shift rightward.
D) MV curve shifts rightward.

D

Economics

You might also like to view...

Which of the following is not considered as a unilateral transfer?

a. income earned from foreign investments b. foreign aid c. personal gifts to friends or family abroad d. institutional charitable donations e. government transfers to foreign residents

Economics

John Maynard Keynes and his followers argued that the Great Depression was primarily the result of:

a. excessive government spending. b. large budget deficits. c. the perverse monetary policies of the Fed. d. insufficient aggregate spending on goods and services.

Economics