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Two Profit-Maximizing Firms,X and Y,are Paying a Wage Rate of $15

Question 53

Multiple Choice

Two profit-maximizing firms,X and Y,are paying a wage rate of $15 but firm Y's marginal labour cost is higher than that for firm X.For this to happen,it must be the case that


A) both firms are monopsonists.
B) firm X is a monopsonist and firm Y is a perfect competitor.
C) both firms are perfect competitors.
D) firm X is a perfect competitor and firm Y is a monopsonist.
E) there has been an error in the calculations.

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