In Figure 31

question 10

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:

Bidders

individuals or entities that offer a price for goods, services, or assets in auctions or competitive bidding scenarios.

Common-value Auction

A type of auction where the item being sold holds the same worth to every participant, however, the participants might possess varying levels of knowledge regarding the true value of the item.

Releasing Information

The act of making certain data or facts available to the public or specific groups.

Auctioneer

A person or company that conducts auctions by accepting bids and declaring goods sold.