1) Consider the above graph. Which of the following are true? (multiple answers may be correct)...

 

  

 

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1) Consider the above graph. Which of the following are true? (multiple answers may be correct) a) At L = 2500, ƏTCL/3L = ƏTRL/L, so the monopsonist chooses the market clearing quantity of labor. b) At L = 2500, ƏTCL/OL> ƏTRL/L, so by reducing L, the monopsonist's TR rises more than his TC rises. c) At L = 2500, JTCL/OL> ƏTRL/JL, so by reducing L, the monopsonist's TR falls less than his TC falls. d) Letting w denote the salary per unit of labor, aw/L <ƏTCL/AL. e) Letting w denote the salary per unit of labor, aw/aL > TCL/AL. 2) Consider the above graph. Which of the following are true? (multiple answers may be correct) a) At L = 1000, JTCL/OL> ƏTRL/L, so hiring an additional unit of labor would cause the monopsonist's TC to rise more than his TR would rise. b) At L = 1000, JTCL/L < ƏTRL/L, so hiring an additional unit of labor would cause the monopsonist's TR to rise more than his TC would rise. c) At L = 1000, aw/L <ƏTCL/L, so hiring an additional unit of labor does not require the monopsonist to raise the wage. d) At L = 1000, aw/aL > 0, so hiring an additional unit of labor requires the monopsonist to raise the wage. salary 1000 2500 MFC MRP quantity 1) Consider the above graph. Which of the following are true? (multiple answers may be correct) a) At L = 2500, ƏTCL/3L = ƏTRL/L, so the monopsonist chooses the market clearing quantity of labor. b) At L = 2500, ƏTCL/OL> ƏTRL/L, so by reducing L, the monopsonist's TR rises more than his TC rises. c) At L = 2500, JTCL/OL> ƏTRL/JL, so by reducing L, the monopsonist's TR falls less than his TC falls. d) Letting w denote the salary per unit of labor, aw/L <ƏTCL/AL. e) Letting w denote the salary per unit of labor, aw/aL > TCL/AL. 2) Consider the above graph. Which of the following are true? (multiple answers may be correct) a) At L = 1000, JTCL/OL> ƏTRL/L, so hiring an additional unit of labor would cause the monopsonist's TC to rise more than his TR would rise. b) At L = 1000, JTCL/L < ƏTRL/L, so hiring an additional unit of labor would cause the monopsonist's TR to rise more than his TC would rise. c) At L = 1000, aw/L <ƏTCL/L, so hiring an additional unit of labor does not require the monopsonist to raise the wage. d) At L = 1000, aw/aL > 0, so hiring an additional unit of labor requires the monopsonist to raise the wage. salary 1000 2500 MFC MRP quantity

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1 Consider the above graph Which of the following are true multiple answers may be correct a At L 2500 TCLL TRLL so the monopsonist chooses the market clearing quantity of labor b At L 2500 TCLL TRLL ... View the full answer