Which of the Following Statements Is False

question 65

Multiple Choice

Which of the following statements is false?

• A)The evidence seems to show that there are only a few, if any, instances of pure monopsony in the real world.
• B)In a monopsony setting, it is possible for a minimum wage to actually increase the number of workers hired.
• C)Although in a monopsony setting it is possible for a minimum wage to actually increase the number of workers hired, it is not possible to raise wage rates continually and always increase employment, too.
• D)The marginal factor cost for a monopsonist is less than the wage rate it pays workers.

---

Definitions:

Cash Inflows

Money received by a company from its various business activities, like sales, investments, and financing.

Initial Cost

Initial cost refers to the amount of money spent to acquire, or the cost associated with starting, an investment, project, or venture, including all necessary expenses to prepare the asset for its intended use.

Payback

The period of time required to recoup the funds expended in an investment, or how long it takes for an investment to reach a breakeven point.

Annual Cash Flows

The total cash that is generated and used by a business in one fiscal year.