Which of the Following Statements Regarding Monopsony Is False

question 29

Multiple Choice

Which of the following statements regarding monopsony is false?

• A) The marginal cost of labour is lower than the average cost of labour in the case of monopsony.
• B) The equilibrium wage and the equilibrium employment levels are lower than what they would be if the labour market were perfectly competitive.
• C) All workers except the marginal worker are paid more than their reservation wage.
• D) The total wage bill is lower in the case of monopsony.
• E) If a competitive labour market were to become a monopsony, economic rent would be transferred from the workers directly to the employer.

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Definitions:

Transactional Leadership

A leadership style based on a system of rewards and punishments that are contingent upon the performance of the team members.

Transformational Leadership

Transformational Leadership is a leadership style that inspires significant, positive change in followers, cultivating their development and exceeding original expectations.

Charismatic Effects

The influence a leader has over followers through their charm, persuasiveness, and personal magnetism, often inspiring intense loyalty and devotion.

Stressful Situations

Scenarios that cause emotional or physical tension, often requiring coping mechanisms to manage or overcome.