To a Monopsonist in a Labour Market,the Average Cost Curve

question 49

Multiple Choice

To a monopsonist in a labour market,the average cost curve of labour

• A)lies above the supply curve of labour.
• B)lies below the supply curve of labour.
• C)is the supply curve of labour,which lies below the marginal cost curve for labour.
• D)is the marginal cost curve of labour when the supply curve is upward sloping.
• E)coincides with the marginal cost curve of labour only below the profit-maximizing wage rate.

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Definitions:

Oligopolies

Market structures characterized by a small number of firms dominating the market, leading to limited competition.

Interdependence

The mutual reliance between two or more entities, often used in economics to describe how the production, distribution, and consumption of goods and services are connected globally.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of what strategies other players choose.

Prisoners' Dilemma

A concept in game theory where two individuals acting in their own self-interest do not produce the optimal outcome.