To a Monopsonist in a Labour Market, the Average Cost

question 66

Multiple Choice

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

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

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Definitions:

Serotonin

A neurotransmitter that is involved in mood regulation, appetite control, and sleep among other physiological processes.

Stressful Environment

A situation or setting that causes significant anxiety, tension, or stress.

Optimistic

Having a positive or hopeful attitude towards the future, often with a confidence in successful outcomes.

Adverse Effects

Unintended, negative outcomes resulting from a medical treatment, medication, or intervention.