If a Firm Is a Monopsony, Then It

question 121

Multiple Choice

If a firm is a monopsony, then it

• A)can pay any price it wants for the factors that it hires.
• B)will have to pay the same price to each factor owner that supplies its factor.
• C)will have to pay a higher price to purchase additional units of a factor.
• D)need not lower the price of its product to induce buyers to purchase additional quantities.

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Definitions:

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Individuals born approximately between 1981 and 1996, considered to be the workforce segment with distinct values and work preferences.

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