Suppose a Monopsonist Currently Employs 100 Workers at a Wage

question 151

Multiple Choice

Suppose a monopsonist currently employs 100 workers at a wage of $400 per week. If the firm wants to expand employment to 110 workers, and the 110th worker will only work for $450 per week, what is the approximate marginal factor cost of the 110th worker?

• A) $450 per week.
• B) $5,500 per week.
• C) $950 per week.
• D) $9,500 per week.
• E) $49,500 per week.

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Definitions:

Trend

The general direction in which something is developing or changing over time.

Control Chart

A graphical tool used in process control to display how a process changes over time, highlighting whether the process stays within predetermined control limits.

Sample Means

The arithmetic average of a set of values or observations, derived from a subset of a larger population.

Control Limits

The boundaries of acceptable variation in a process, used in statistical process control charts.