If an Input Market Is Monopsonistic, and the Firm's Output

question 51

Multiple Choice

If an input market is monopsonistic, and the firm's output market is monopolistic, then in equilibrium:

• A)w < MFC = MRP < VMP.
• B)w = MFC = MRP = VMP.
• C)w < MFC = MRP = VMP.
• D)w = MFC = MRP < VMP.

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Definitions:

Guaranty

A legal commitment to be responsible for another's debt or contractual performance if that person fails to meet their obligations.

Primarily Liable

Liable for paying the amount designated on an instrument when it is presented for payment.

Common Law Lien

A right to keep possession of property belonging to another person until a debt owed by that person is paid in full.

Statute

A written law passed by a legislative body at the federal, state, or local level.