Because a Monopsony Is the Only Buyer in a Particular

question 48

Multiple Choice

Because a monopsony is the only buyer in a particular market, the

• A) supply of labour to the monopsony is perfectly inelastic.
• B) supply of labour curve faced by the monopsony is downward- sloping.
• C) supply of labour to the monopsony is perfectly elastic.
• D) supply of labour curve faced by the monopsony is upward- sloping.

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Definitions:

Holding Period

The length of time an investment is held by an investor before being sold.

Riskless Arbitrage

A financial strategy that aims to profit from discrepancies in the price of identical or similar financial instruments on different markets or in different forms without risk.

Spot Oil Prices

The current market price at which oil can be bought or sold for immediate delivery.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities.