Suppose That Monopsony Behavior Results from the Increased Monitoring Costs

question 45

Multiple Choice

Suppose that monopsony behavior results from the increased monitoring costs at large firms.A higher minimum wage would ________ the marginal expense of hiring labor but only if the workers are ________ afraid of losing their jobs and thus need less supervision.

• A) rise; more
• B) raise; less
• C) lower; more
• D) lower; less

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Definitions:

Spine

A leaf that is modified for protection, such as a cactus spine.

Arboreal Existence

A lifestyle adapted to living in trees, common among various animals such as monkeys, squirrels, and certain reptiles.

Cultural Evolution

The process by which societal beliefs, practices, and institutions undergo change over time, often driven by adaptation to environmental and social challenges.

Environmental Changes

Variations or alterations in the environment, often resulting from natural processes or human activities, that can impact ecosystems and human societies.