Use the Figure Below to Answer the Following Questions

question 119

Multiple Choice

Use the figure below to answer the following questions.

Figure 18.3.2
-Refer to Figure 18.3.2. This figure illustrates a monopsonist in the labour market. The profit-maximizing wage rate is ________ and the quantity of labour hired is ________.

• A)$4 per hour; 800 hours
• B)$4 per hour; 400 hours
• C)$7 per hour; 600 hours
• D)$9 per hour; 400 hours
• E)$2 per hour; 150 hours.

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Definitions:

Tax

A financial charge or levy imposed by a government or other authority to fund public expenditures.

Tax Burden

The measurement of how much of a tax's economic weight falls on an individual or economic entity, including both the direct and indirect effects.

Consumers

Individuals or groups who use goods and services generated within the economy, contributing to demand.

Perfectly Elastic

This term refers to a situation in demand or supply where the quantity demanded or supplied responds infinitely at a particular price level.