Relative to a Competitive Labor Market,monopsony

question 41

Multiple Choice

Relative to a competitive labor market,monopsony

• A) is also efficient.
• B) creates a deadweight loss because it pays an excessive wage.
• C) creates a deadweight loss because the wage is below the marginal revenue product of labor.
• D) creates a deadweight loss because the wage is above the marginal revenue product of labor.

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Definitions:

GIC

A Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period of time.

Compounded Monthly

A finance term where interest is calculated and added to the principal balance each month, increasing the amount of future interest earned.

Periodic Payment

Payments made or received regularly over a specific period, often monthly or annually.

GIC

In Canada, a Guaranteed Investment Certificate is a type of investment that guarantees a fixed return rate over a certain period.