Suppose the Demand Faced by a Labor Monopsony Is W

question 6

Multiple Choice

Suppose the demand faced by a labor monopsony is W = 20,000 - 50l, where W is the annual wage and l is the number of workers hired. The labor supply is given by W = 5,000 + 75l. How many workers will the firm hire?

• A) 50
• B) 75
• C) 60
• D) 80

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Definitions:

Attention Deficit Hyperactivity Disorder

A neurological disorder characterized by patterns of inattention, hyperactivity, and impulsivity that are not appropriate for a person's age.

Dementia

A decline in cognitive function beyond what might be expected from normal aging, affecting memory, thinking, orientation, comprehension, calculation, learning capacity, language, and judgment.

Dummy Variable

A variable used to model the effect of categorical independent variables. A dummy variable may take only the value zero or one.

Categorical Independent Variables

Variables that divide subjects into groups but do not allow for any kind of mathematical operation among groups.