Suppose a Monopsonist Wants to Hire More Workers

question 20

Multiple Choice

Suppose a monopsonist wants to hire more workers. If it has to pay the same wage to all of its workers, the:

• A) marginal factor cost will fall while the wage will rise.
• B) wage will fall while the marginal factor cost will rise.
• C) difference between the wage and marginal factor cost will become smaller.
• D) difference between the wage and the labor supply curve will increase.
• E) wage and the marginal factor cost will increase.

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Definitions:

Aggressive Behavior

Behavior aimed at causing harm or pain to another being, motivated by hostility, anger, or a desire to dominate.

Inhibition

Refers to the psychological process through which certain behaviors or responses are suppressed.

Respondent Behavior

A behavioral process (also known as the conditioned response) that occurs in reaction to a specific stimulus without conscious intention.

Physiological Processes

The natural biological activities and functions occurring within the body's systems and organs.