If a Monopsonist Offers a Wage of $6, He Finds

question 52

Multiple Choice

If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:

• A) marginal factor cost is $6.
• B) marginal factor cost is $200.
• C) total wage cost is $1,200.
• D) total wage cost is $7,200.
• E) $6 wage is too high.

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Definitions:

Average Speed

The total distance traveled divided by the total time taken for the journey.

Miles

A unit of distance used primarily in the United States and the United Kingdom, equivalent to 1,609 meters or approximately 1.609 kilometers.

Complete Stop

A full cessation of motion, especially as required by traffic laws at stop signs or signals.

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Unforeseen events involving vehicles on the road that result in damage and potentially injuries.