Firm a Is a Monopoly

question 81

Multiple Choice

Firm A is a monopoly.The demand for its output is p = 90 - Q.Production is such that Q = L.Firm A hires only unionized labor.The marginal cost to the union is $10 per unit of labor.The union will sell

• A) 20 units of labor at a wage of $10.
• B) 20 units of labor at a wage of $40.
• C) 20 units of labor at a wage of $50.
• D) 20 units of labor at a wage of $70.