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Home / Questions / In Exhibit P-8, the additional labor cost per 10 workers hired when the monopsonist goe

In Exhibit P-8, the additional labor cost per 10 workers hired when the monopsonist goe

   In Exhibit P-8, the additional labor cost per 10 workers hired when the monopsonist goes
                            from 10 to 20 workers is

a. $50

b. $110

c. $160

d. $360

e. $480

112.              In Exhibit P-8, the monopsonist will maximize profits by hiring how many workers?

a. 10

b. 20

c. 30

d. 40

e. unable to determine from the information given

113.              For a monopsonist, as the number of workers hired increases, the

a. wage rate falls due to the increase in supply

b. MLC curve and the labor supply curve get further apart

c. MLC curve and the labor supply curve get closer together

d. total labor costs fall

e. first workers continue to get paid less than the new workers

114.              If the wage rate in a monopsonistic industry is $15, the marginal labor cost will be

a. $0

b. $1

c. $15

d. greater than $15

e. less than $15

115.              The monopsonistic employer hires more workers until marginal

a. physical product is zero

b. revenue product equals marginal labor cost

c. revenue product equals the wage

d. physical product equals the wage

e. physical product equals marginal labor cost

116.              If a monopsony finds that its MRP is greater than its MLC, it

a. is doing the right thing to maximize profits

b. should hire fewer workers to increase profits

c. should hire more workers to increase profits

d. should pay the workers a lower wage

e. should produce less output

117.              In a monopsonistic labor market, workers are paid a wage

a. below their MRP

b. equal to the intersection of MRP and S

c. equal to the MLC

d. equal to the price of the output

e. above their MLC

118.              Johnson’s Piggery is the only employer in town. Johnson employs 500 workers and pays
                            them each a wage of $8. The MRP of the 500th worker is $10. Johnson’s return to
                            monopsony power is

a. 2 percent

b. equal to the marginal labor cost

c. $4,000

d. $9

e. $1,000

119.              When there is a positive return to monopsony power, this means

a. many employers share economic profits from exploiting workers

b. workers have been successful in forming unions

c. labor markets are perfectly competitive

d. workers are paid less than in a competitive labor market

e. wages are equal to the marginal revenue product of labor

120.              If a monopsonist discovers that the MLC is $6 and the MRP is $3, she should

a. hire more workers and pay them more

b. hire fewer workers and pay them more

c. hire more workers and pay them less

d. hire fewer workers and pay them less

e. keep hiring the same number of workers at the current wage

Dec 11 2019 View more View Less

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