Bridge Coal Company Is the Only Employer in a Remote

question 154

Multiple Choice

Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market. If the price of coal increases, then the firm's:

• A) ME curve shifts leftward.
• B) AE curve shifts rightward.
• C) ME and AE curves shift rightward.
• D) MV curve shifts rightward.

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Definitions:

Benefit

An advantage or profit gained from something.

Constructive Delivery

A symbolic delivery that confers the right to take possession of property that cannot be physically delivered.

Exclusive Possession

The right of a tenant or lessee to use and control a property without interference from the landlord or lessor.

Bailed Property

Items in the possession of someone who is not their owner, under a temporary agreement, awaiting its return or fulfillment of a condition.