Suppose a Monopsonist Wants to Hire More Workers

question 53

Multiple Choice

Suppose a monopsonist wants to hire more workers. If it has to pay the same wage to all of its workers, the:

• A) marginal factor cost will fall while the wage will rise.
• B) wage will fall while the marginal factor cost will rise.
• C) difference between the wage and marginal factor cost will become smaller.
• D) wage and the marginal factor cost will increase.

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Definitions:

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, that help in making decisions, forming judgments, or solving problems.

System II Strategies

Cognitive processes associated with analytical thinking that are deliberate, controlled, and typically require conscious effort, as opposed to intuitive or automatic System I processes.

Atypical

Atypical refers to something that is not typical or usual; in medical or psychological contexts, it often describes conditions, behaviors, or responses that deviate from the norm.

Prison Guard

An individual responsible for the supervision, safety, and security of prisoners in a jail or prison.