Monopsony

Front

What is the quantity of labor a monopsony firm would hire, and what is the wage it will pay? Options: q_L1 , w_u, q_L1 , w_x, q_L2 , w_t, q_L2 , w_y, q_L2 , w_x

Back

q_L1 , w_u

Front

What is the marginal factor cost of the fifth worker?

Back

$90

Front

Which of the following best describes a monopsony market? Options: many buyers, many sellers; many buyers, a few sellers; a few buyers, many sellers; one buyer, many sellers; many buyers, one seller

Back

one buyer, many sellers

Front

A single large hospital system hires all nurses in a city. Assume that this is a for-profit hospital system. Which of the following can we predict about this market?

Back

Nurses are paid less than they would be paid in a competitive labor market.

Front

What is the competitive market wage and what is the monopsony wage?

Back

Competitive market wage: w_d , Monopsony wage: w_e

Front

The market supply of college instructors is given here. What is the marginal factor cost of the second instructor?

Back

$70,000

Front

A monopsony market is one in which:

Back

there is one buyer and many sellers.

Front

Which of the following statements is true about a monopsony labor market? The marginal factor cost of labor is greater than the wage rate, There is one seller and many buyers., There are no profits., The profit maximizing choice of labor will be at the intersection of labor supply and labor demand.

Back

The marginal factor cost of labor is greater than the wage rate

Front

What area represents deadweight loss in this monopsony labor market? Options: w_azQ₁0, vzy, vxy, w_bvxw_d, w_bvQ₁0

Back

vxy

Front

What wage and quantity combination will this firm choose to maximize profits? Options: 600 workers, $70 per day; 600 workers, $35 per day; 400 workers, $25 per day; 400 workers, $35 per day; 400 workers, $55 per day

Back

400 workers, $25 per day