Wage and MFC differ for a monopsonist because:
A. the monopsonist is forced to pay a wage greater than the worker's MFC.
B. the monopsonist must accept the market wage rate.
C. workers are not as efficient when employed by a monopsonist.
D. any wage increase applies to all workers, not just to the next hired.
Answer: D
You might also like to view...
Suppose that due to a drought, the price of agricultural goods rises. If land is specific to agriculture, capital is specific to manufacturing, and labor is mobile between sectors, which of the following is TRUE?
a. The percentage change in labor income is less than zero. b. The percentage change in labor income is greater than the percentage change in the relative price of agricultural goods. c. The percentage change in labor income is greater than the percentage change in the relative price of manufacturing goods. d. The percentage change in labor income is less than the percentage change in the relative price of agricultural goods.
Which of the following periods was not characterized by inflation in the U.S. economic history?
a. 1917–1920 b. 1929–1933 c. 1947 d. 1978–1980 e. 1980–1989