Suppose a Monopsonist Hires Its Second Worker and This Hiring

question 45

Multiple Choice

Suppose a monopsonist hires its second worker and this hiring has a marginal factor cost of $75 per day. If the market wage is now $62.50 per day, what was the first employee earning when she worked alone?

• A) $40.
• B) $45.
• C) $50.
• D) $55.

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Definitions:

Ethical Dilemmas

Situations in which a difficult choice has to be made between two or more morally acceptable or unacceptable options.

Judgmental Attitudes

Holding preconceived notions or criticisms towards others without understanding their circumstances, often leading to bias and unfair treatment.

Different Perspectives

The consideration or evaluation of a situation or problem from multiple viewpoints or frames of reference.

Utilitarianism

A moral theory suggesting that the best action is the one that maximizes utility, generally defined as that which produces the greatest well-being of the greatest number of people.