A monopolist will hire fewer workers than a competitive firm, other things being equal, because
A) the monopolist exploits labor and other types of producers do not.
B) the monopolist must take account of the declining product price that must be charged in order to sell more units of the product.
C) the monopolist is more efficient.
D) diminishing marginal productivity of labor is more severe for a monopolist.
B
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If we use a narrow definition of monopoly, then a monopoly is defined as a firm
A) that has the largest market share in an industry. B) that can ignore the actions of all other firms because it produces a superior product compared to its rivals' products. C) that can ignore the actions of all other firms because it produces a product for which there are no close substitutes. D) that has been granted special production rights by the government.
When there are few unemployed resources, additional spending will tend to
a. flow directly to the unemployed resources, so that the multiplier can be maintained at 1/1-mpc. b. increase the marginal propensity to consume, and thereby increase the size of the multiplier. c. increase the demand for resources and drive prices downward, increasing the size of the multiplier. d. bid resources away from other activities and drive prices upward, reducing the size of the multiplier.