Suppose Your Firm Is a Monopsonist Hiring Only One Variable

question 39

Multiple Choice

Suppose your firm is a monopsonist hiring only one variable input.If you want to maximize profits,you will purchase that variable input up to the point where the

• A)cost of the input equals the profit generated by the employment of that input.
• B)demand curve intersects the supply curve of the input.
• C)marginal product of that input equals the price of one unit of the input.
• D)wage rate is the highest.
• E)MRP curve for the input intersects the marginal cost curve for the input.

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Definitions:

Labour Disputes

Conflicts between employers and employees, typically over matters such as wages, working conditions, and union representation.

Mediator

A third party in an employment dispute who meets with one party and then the other to suggest compromise solutions or to recommend concessions from each side that will lead to an agreement.

Collective Agreements

Legal contracts between employers and a group of employees, often represented by a union, that outline the terms of employment.

Economic Reasons

Justifications or motivations based on financial or economic factors that influence decisions or policies.