Consider two situations: In situation A the production of widgets is monopolized by a single firm. In
Question:
Consider two situations: In situation A the production of widgets is monopolized by a single firm. In situation B the production of widgets is perfectly competitive. In both situations the supply of labor to widget makers is infinitely elastic at a wage of w. Which of the following statements is true?
A)
B)
C)
D)
A monopolist who owned the entire supply of a scarce resource would set a price
A)B)
C)
D)
3.For a monopsonistic hirer of labor, the gap between labor's marginal value product and its wage rate will be greater
A)B)
C)
D)
4 A profit-maximizing firm will never hire that quantity of a factor of production for which that factor has an increasing marginal productivity because
A)
B)
C)
D)
If a firm is a price taker in both the input and output markets, its marginal revenue product of labor is given by
A)B)
C)
D)
Expert Answer:
1 The answer is option C which is The marginal value product of labor is higher ... View the full answer
