Two Employers,A and B,pay the Same Wage but Employer a Faces

question 36

Multiple Choice

Two employers,A and B,pay the same wage but Employer A faces a more inelastic supply curve of labor than Employer B.Both firms are monopsonies but have similar outputs and technologies.Other things being the same,then in the long run

• A) Employer A will employ less capital than Employer B.
• B) Employer A will employ more capital than Employer B.
• C) Both employers will employ the same amount of capital.
• D) Both firms, in the long run, will pay a wage equal to their marginal revenue product.

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Definitions:

BPM

Stands for Business Process Management, a systematic approach to improving an organization's workflow to be more efficient and adaptable.

Efficiency

Refers to the degree to which a process or system can achieve its goals with minimal waste of time, resources, or effort.

Strategic Information System

Systems designed to help an organization gain a competitive advantage, align organizational processes with its strategic goals, or significantly reduce costs.

Internal Customer

Employees or departments within an organization that use resources or services provided by other parts of the organization.