Which of the Following Statements Is False

question 28

Multiple Choice

Which of the following statements is false?

• A) Monopsony firms will hire more workers if a minimum wage is imposed below the monopsony wage.
• B) Monopsony firms will behave as if they are competitive if a wage is imposed at the level of the competitive wage.
• C) Monopsony firms can earn a higher profit than firms operating in competitive labour markets.
• D) Monopsony firms have a wage lower than the marginal labour cost because they face upward- sloping labour supply curves.
• E) Monopsony firms have a wage greater than the marginal labour cost because they face upward- sloping labour supply curves.

---

Definitions:

Business Units

Individual segments within a larger corporation that operate independently with their management team and financial objectives, often focusing on a specific product line or market.

Profit Centre

A branch or division of a company that is treated as a separate business, responsible for generating its own revenue and profits.

Performance Measure

Indicators used to evaluate the efficiency, effectiveness, and success of an organization's activities or employees' actions.

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated as the net profit of the investment divided by its cost.