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.
E) wage rate decreases force workers to work longer hours.
Correct Answer:
Verified
Q135: Exhibit 11-12 A monopsonist Q136: The profit-maximizing employment level for a monopsonist Q137: Exhibit 11-11 Labor wage and cost Q138: For a monopsonist: Q139: Exhibit 11-11 Labor wage and cost Q141: Exhibit 11-13 A monopsonist's supply and Q142: The monopsonist's labor supply curve is the Q143: The MFC curve increases for a monopsonist Q144: If a town has a monopsony, this Q145: In a labor market with one employer,
A) wage > TWC.
B) wage
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