Which of the following is a true statement?
A)Monopolists employ too many labor resources,because the value of the marginal product exceeds the marginal opportunity cost of labor
B)For a monopolist,the marginal revenue product of labor exceeds marginal wage at the profit maximizing level of employment
C)Monopolists pay a lower wage than competitors for the same type of labor
D)The monopolist's demand for labor curve is less elastic than if it were a competitor in the sale of its output.

Question

Quizplus · Accepted Answer

Monopolists have a demand for labor curve that is less elastic than if they were a competitor. This is because they are the sole seller in the market and have the ability to set the price of their output. As a result, they can hire labor at a higher wage without significantly affecting their profits.

Which of the Following Is a True Statement