After the Imposition of Minimum Wage, Monopsonist's Profits Will

question 20

Multiple Choice

After the imposition of minimum wage, monopsonist's profits will:

• A) equal to zero
• B) Rising as fast as the marginal cost
• C) increase
• D) decrease
• E) remain the same

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing immediate needs.

Payment

The transfer of money, goods, or services as compensation or fulfillment of an obligation.

Demand Instrument

A type of draft that allows the payee to demand payment at any time from a holder.

Payee

The individual or entity to whom a payment is to be made or who will receive the payment.