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The Diagram Below Shows the Supply and Demand for Labour

Question 12

Multiple Choice

The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.    FIGURE 14- 4 -Refer to Figure 14- 4.The wage paid by this monopsonistic firm will be and employment will be _ . A) below $25 per hour; below 750 units of labour B) $25 per hour; 750 units of labour C) $35 per hour; 750 units of labour D) between $25 and $35 per hour; between 750 and 1000 units of labour E) $30 per hour; 1000 units of labour FIGURE 14- 4
-Refer to Figure 14- 4.The wage paid by this monopsonistic firm will be and employment will be _ .


A) below $25 per hour; below 750 units of labour
B) $25 per hour; 750 units of labour
C) $35 per hour; 750 units of labour
D) between $25 and $35 per hour; between 750 and 1000 units of labour
E) $30 per hour; 1000 units of labour

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