Which of the Following Is True for a Monopsony

question 115

Multiple Choice

Which of the following is true for a monopsony?

• A)It can buy additional units of a factor without increasing the price it pays for the factor.
• B)It can buy additional Units of a factor without increasing the price it pays for the factor.
• C)The supply of labor it faces is the industry supply of labor.
• D)The supply of labor curve lies above the firm's MFC curve.

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Definitions:

Lockbox System

A service offered by banks to companies for the collection of payments from customers, wherein the payments are sent directly to a post office box, thereby speeding up collection times.

Processing Time

The amount of time required to complete a specific process or task, often related to manufacturing or computational operations.

Preauthorized Payment

A financial arrangement that allows a business or individual to automatically debit funds from a customer's bank account for recurring expenses.

Total Collection Time

The period it takes for a business to convert its credit sales into cash, encompassing the entire process from sale to cash collection.