If a Firm Is a Monopsonist, Then It Faces

question 50

Multiple Choice

If a firm is a monopsonist, then it faces

• A)a downward sloping demand curve for its product, and its marginal revenue curve will lie below its demand curve.
• B)a horizontal marginal factor cost curve.
• C)an upward sloping factor supply curve, and its marginal factor cost curve will lie above the factor supply curve.
• D)an upward sloping factor supply curve, and its marginal factor cost curve will coincide with the factor supply curve.
• E)an upward-sloping factor supply curve, and its marginal factor cost curve will lie below the factor supply curve.

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Definitions:

Biodegradable Product

A product that can be broken down naturally by microorganisms over time into simpler, less harmful substances.