In Figure 31

question 55

Multiple Choice

In Figure 31.2, what is the difference between the marginal revenue product of the last worker hired by the monopsonist and the wages the monopsonist pays the last worker?

• A) $3 per hour.
• B) $5 per hour.
• C) $4 per hour.
• D) $2 per hour.

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Definitions:

Trading Off

The act of giving up one benefit in order to gain another, often seen as a compromise.

Rationale

The underlying reasons or logical basis for a belief, action, or method.

Premature Dominance

The early establishment of control or influence in a situation before all factors have been appropriately considered.