-Refer to the Graph Above

question 117

Multiple Choice

-Refer to the graph above.The reduced level of labour usage under monopsony,compared to perfect competition,is illustrated by the distance

• A) 0L1.
• B) (L3 - L2).
• C) (L3 - L1).
• D) (L1 - L2).
• E) 0L2.

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Definitions:

Marginal Output

The additional quantity of output that is produced as a result of using one more unit of a particular input, assuming all other factors of production remain constant.

Marginal Physical Product

The change in output resulting from employing one more unit of a particular input, all else being constant.

Productivity

The measure of the efficiency of production, often evaluated as the ratio of output to inputs in the production process.

Complementary Resources

Natural or manufactured materials that work together with another resource in production to create a product or service.