Suppose a Monopsonist Hires Its Second Worker and This Hiring

question 35

Multiple Choice

Suppose a monopsonist hires its second worker and this hiring has a marginal factor cost of $75 per day. If the market wage is now $62.50 per day, what was the first employee earning when she worked alone?

• A) $40.
• B) $45.
• C) $50.
• D) $55.
• E) $60.

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Definitions:

Displacement

A term referring to things and events removed in time and space.

Linguistic Relativism

The concept that the structure and vocabulary of a language influence its speakers' perception and categorization of the world.

Contrasting Tones

Employing distinctly different pitches, colors, or attitudes in speech, writing, art, or music to highlight differences or create effects.

Whistling

Producing a high-pitched sound by forcing air through a small hole formed by the lips, teeth, or objects, often used as a form of communication or musical expression.