For a Monopsonist the Marginal Cost of Increasing Its Workforce

question 38

Multiple Choice

For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because

• A) there is not good factor substitution in a monopsony.
• B) the wage rate offered the newest employee must be paid to all workers.
• C) the industry will be a closed shop.
• D) a normal rate of return must be paid to the owner.

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Definitions:

Participatory Democracy

A model of democracy in which citizens have the power to decide directly on policy and politicians are responsible for implementing those policy decisions.

Consensus

The general agreement or collective unanimity among members of a group or society.

Hereditary Leadership

A system of governance or organizational leadership where authority is passed down through family lines.

Traditional Authority

Traditional authority is a form of leadership in which power is derived from established customs, cultural heritage, and historical precedence.