For a Monopsonist, Marginal Factor Cost Exceeds the Wage Rate

question 211

Multiple Choice

For a monopsonist, marginal factor cost exceeds the wage rate since

• A) more workers have to be paid the prevailing wage rate.
• B) the supply of labor is perfectly elastic.
• C) when new workers are hired the wage rate must be increased for all workers and not just for the additional workers.
• D) the labor demand is downward sloping.

Understand the process of structuration and the role of systems, structures, and resources in shaping human life.

Understand the distinction between micro and macro-level phenomena in sociology.

Identify theories and concepts related to action and order at both the micro and macro levels.

Describe the impact of social structures and agents on societal changes.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (variable and fixed) in the cost of a product.

Unit Product Cost

Unit product cost is the total cost associated with producing one unit of a product, including all variable and fixed costs.

Direct Labor Cost

The total expense a company incurs for employees who work directly on the manufacturing or production of products.

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as expenses of the period.