A Monopolist Will Hire Fewer Workers Than a Perfectly Competitive

question 264

Multiple Choice

A monopolist will hire fewer workers than a perfectly competitive firm because

• A) the marginal product curve decreases as additional units of labor are hired for a monopoly but not for a competitive firm.
• B) there is a variety of employers in a competitive market and only one in a monopoly.
• C) marginal revenue is greater than price for a monopoly while marginal revenue is equal to price for a competitive firm.
• D) to sell an additional unit of the good the competitive firm will keep the price the same while the monopolist must lower it on all units sold.

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Definitions:

Endodermis

A layer of cells in the root of a plant that acts as a barrier to the free movement of substances between the soil and the vascular tissue.

Agricultural Soil

Soil that is used or suitable for farming activities, characterized by its fertility and ability to support crop production.

Loam

A rich soil blend, containing a balance of silt, sand, and clay, along with organic matter.

Epiphytes

Plants that grow on other plants for physical support but do not derive nutrients from them, obtaining moisture and nutrients from the air, rain, and sometimes from debris accumulating around them.