Micro Unit 5, Question 12: Monopsony

Micro Unit 5, Question 12: Monopsony

Assessment

Interactive Video

Business

11th Grade - University

Hard

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The video tutorial explains the concept of perfect competitive resource markets and introduces monopsony, a market condition where a single firm is the sole employer. It discusses how monopsony differs from perfect competition, particularly in terms of wage setting and marginal resource cost. The tutorial also covers how equilibrium wage and quantity are determined in a monopsony, highlighting the differences in hiring and wage levels compared to a perfectly competitive market.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a monopsony in the context of labor markets?

A market with multiple firms hiring workers

A market with no firms hiring workers

A market where workers set their own wages

A market with only one firm hiring workers

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is the marginal resource cost higher than the wage in a monopsony?

Because the firm pays each worker a different wage

Because the firm can wage discriminate

Because the firm can hire unlimited workers at a fixed wage

Because the firm has to pay all workers the same higher wage

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In a monopsony, where do firms hire workers?

Where marginal revenue product equals marginal resource cost

Where supply equals demand

Where the wage is highest

Where the number of workers is maximized

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the employment level in a monopsony compare to a perfectly competitive market?

Unpredictable in a monopsony

The same in both markets

Lower in a monopsony

Higher in a monopsony

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What wage do workers receive in a monopsony compared to a perfectly competitive market?

Higher in a monopsony

Lower in a monopsony

The same in both markets

Unpredictable in a monopsony