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# A monopsonist can choose the ____________, while a monopolist can choose the

A monopsonist can choose the ____________, while a monopolist can choose the
___________.

a.price it will charge; wage rate it will pay

b.wage rate it will pay; price it will charge

c.price for its output; quantity it will produce

d.marginal product of labor; marginal cost of labor

e.number of competitors; number of buyers

82.              Suppose a monopsonist wants to hire more workers. If it has to pay the same wage rate to
all of its workers

a.the marginal labor cost will fall while the wage rate will rise

b.the wage rate will fall while the marginal labor cost will rise

c.the difference between the wage rate and the marginal labor cost will decrease

d.the difference between the wage rate and the supply curve of labor will increase

e.both the wage rate and the marginal labor cost will increase

83.              If a monopsonist increases its output by adding both capital and labor to production,
which of the following will decline?

a.wage rate

b.unemployment

c.marginal cost of labor

d.marginal physical product

e.marginal revenue product

84.              Suppose a monopsonist currently employs 100 workers at a wage rate of \$400 per week.
If the firm wants to expand employment to 110 workers, and the 110th worker will only
work for \$450 per week, what is the marginal labor cost of the 110th worker?

a.\$450 per week

b.\$5,500 per week

c.\$950 per week

d.\$9,500 per week

e.\$49,500 per week

85.              Schleppsi, a soft drink maker, is a monopsonist in the county where it manufactures its
product. Suppose the total labor cost per week to the firm is \$35,000 with 99 workers and
the total labor cost with 100 workers is \$36,000. What will the weekly wage rate be if
Schleppsi hires the 100th worker?

a.\$35

b.\$36

c.\$100

d.\$350

e.\$360

86.              Suppose a monopsonist hires its second worker and this person has a marginal labor cost
of \$75 per day. If the wage rate is now \$62.50 per day, what was the wage rate of the first
worker before the second was hired?

a.\$40

b.\$45

c.\$50

d.\$55

e.\$60

87.              In a labor market with one employer, the MLC is

a.above the supply curve of labor

b.above the demand curve for labor

c.what determines the wage rate

d.downward sloping

e.horizontal

88.              Suppose Sarah Beslin is the Chief Executive Officer (CEO) of an inline skates
corporation in Mayberry township. Suppose also that the corporation is a monopsony. It
is customary in the U.S. that companies meet with each other at their local community
Chamber of Commerce. When Sarah goes to the Mayberry Chamber of Commerce for a
CEO meeting,

a.she advises the other CEOs on how to maximize profits

b.the meeting participants must beware of taking actions that could be construed as
collusion

c.there are sessions on buyer and supplier issues

d.CEOs discuss how to deal with the rising cost of labor

e.she is the only one there

89.              Which of the following statements is true about monopsony?

a.Monopsonists face an upward-sloping supply curve of labor as long as unions
control the supply curve of labor.

b.Monopsonists can choose to hire any number of workers they wish.

c.Monopsonists are also monopolists.

d.Monopsonists will keep hiring until the worker’s MRP = TLC.

e.Monopsonists face a horizontal supply curve of labor as long as unions do not
control the supply of labor.

90.              Imagine yourself to be a monopsonist producing strawberries in a small Florida farming
community.

a.You do not have to deal with the marginal revenue product of labor.

b.You can control the price of the good.

c.The wage rate is given to you and you can hire as many workers as you wish at that
rate.

d.You face an upward-sloping supply curve of labor and can choose any wage rate and
labor combination shown on that curve.

e.For your firm, labor is preferred to capital as a factor of production.

Dec 12 2019 View more View Less