Marginal Factor Cost (MFC) Is the Same as the Wage

question 133

True/False

Marginal factor cost (MFC) is the same as the wage rate for a monopsonist.

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Definitions:

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Joseph Stiglitz

An American economist and professor known for his work on income distribution, risk, and information economics, and a recipient of the Nobel Memorial Prize in Economic Sciences.

NAFTA Treaty

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries and facilitate the free flow of goods and services.

Trade Balance

The difference between a country's exports and imports over a certain period, indicating the net earnings from trade.