(Figure: Labor Monopsony) the Monopsony in the Input Market (As

question 330

Multiple Choice

(Figure: Labor Monopsony) The monopsony in the input market (as shown in the graph) , which is also a competitive firm in the product market, would hire _____ workers.

• A) 100
• B) 50
• C) 200
• D) 30

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Definitions:

Capital

Financial assets or the monetary value of physical assets such as buildings or machinery used by a business to produce goods or services.

Marginal Product

The additional output produced as a result of adding one more unit of a specific input, keeping all other inputs constant.

Additional Output

The extra quantity of output produced as a result of increasing the level of input by one unit.

Unit of Labor

A measurement of work or effort by an employee or worker.