If the Supply of Labor to a Monopsonist Is Everywhere

question 64

Multiple Choice

If the supply of labor to a monopsonist is everywhere unit elastic,and the marginal expenditure equals $1,then the wage will equal

• A) $0.50.
• B) $0.75.
• C) $1.00.
• D) $2.00.

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Definitions:

Consumption

The use of goods and services by households, representing the end phase of the economic process as goods are utilized to fulfill needs or wants.

Income

Money received, especially on a regular basis, for work or through investments.

Directly Related

A relationship between two variables in which they move in the same direction.

Consumer's Income

The sum of money a consumer can spend on products and services.