A Monopsonist Hires Labor in a Market with Perfectly Competitive

question 72

Multiple Choice

A monopsonist hires labor in a market with perfectly competitive supply.Whenever she hires an additional worker,

• A)she must reduce the wage paid to all workers already hired.
• B)she will not change the wage paid to all workers already hired.
• C)she must raise the wage paid to all workers already hired.
• D)she may or may not choose to change the wage paid to all workers already hired.

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Definitions:

Federal Government

The federal government is the national government, which holds the ultimate authority over a federated country, responsible for executing laws, and managing national affairs and foreign policy.

Federal Budget

The government's plan for revenue and expenditures for a fiscal year, detailing how federal funds will be spent and collected.

Direct Taxes

Taxes levied directly on an individual's or organization's income or wealth, such as income tax and property tax.

Indirect Taxes

Taxes that are not directly paid by an individual but instead are levied on goods and services, such as sales tax or value-added tax.