All of the Following Are True for a Monopsonist Except

question 111

Multiple Choice

All of the following are true for a monopsonist except

• A)The marginal factor cost for labor exceeds the wage rate.
• B)The demand for labor is the same as the marginal revenue product of labor.
• C)The derived demand for labor is downward-sloping.
• D)The market demand for labor is upward-sloping.

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Definitions:

External Financing

Funds raised from outside the company, including loans, equity investments, and bonds, to finance its operations or growth.

Financing Activities

Transactions involving long-term liabilities and equity of a company, including issuing debt, repurchasing shares, and paying dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually entailing dividend payments before dividends are distributed to common stockholders.

Cash Flow

The total amount of money being transferred into and out of a business, particularly concerning liquidity.