The Wage Rate That a Monopsonist Would Find Most Profitable

question 116

Multiple Choice

The wage rate that a monopsonist would find most profitable is the wage

• A)At the intersection of the marginal wage curve and the marginal cost curve.
• B)On the labor supply curve corresponding to the level of employment at which the marginal factor cost curve (for labor)intersects the labor demand curve.
• C)On the labor demand curve corresponding to the level of employment at which the marginal factor cost equals market supply.

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Definitions:

Interest Expense

The cost accrued on borrowed funds, reflected as a financial charge for the use of the lender's money.

FICA Withholding

Taxes that are automatically deducted from an employee’s wages for Social Security and Medicare, as mandated by the Federal Insurance Contributions Act.

Tax Rate

The percentage at which an individual or corporation is taxed, varying by income or profits level and jurisdiction.

Deductions

Amounts that are subtracted from an individual's gross income to reduce the income subject to tax, including various expenses, contributions, and allowances.