BigBiz, a Local Monopsonist, Currently Hires 50 Workers and Pays

question 3

Multiple Choice

BigBiz, a local monopsonist, currently hires 50 workers and pays them $6 per hour. To attract an additional worker to its labor force, BigBiz would have to raise the wage rate to $6.25 per hour. What is BigBiz's marginal factor cost?

• A) $6.25 per hour.
• B) $12.50 per hour.
• C) $18.75 per hour.
• D) $20 per hour.

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Definitions:

Outplacement Services

Support services provided by companies to help terminated employees transition to new jobs, including resume writing and interview training.

Terminated Employees

Individuals whose employment contracts have been ended by their employers due to various reasons such as layoffs, misconduct, or organizational changes.

Yield Ratios

A metric used in human resources to evaluate the effectiveness of the recruitment process, comparing the number of candidates at various stages of the process to the number of hires.

Recruitment Sources

Various platforms and methods used by organizations to attract and identify potential candidates for employment.