If a Monopsony Finds That Its MRP Is Greater Than

question 55

Multiple Choice

If a monopsony finds that its MRP is greater than its MFC, it:

• A) is doing the right thing to maximize profits.
• B) should hire fewer workers to increase profits.
• C) should hire more workers to increase profits.
• D) should pay the workers a lower wage.
• E) should produce less output.

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Definitions:

Instrument

A formal legal document that records a right, duty, or the execution of a transaction, such as contracts, deeds, and promissory notes.

UCC

Short for Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.

Signature

A person's name or mark written by themselves, used as a proof of intention and identity in a document.

Laborer's Pension Fund

A retirement fund specifically designed for the benefit of labor union members.