A Monopsonist Faces a Constant Elasticity of Labor Supply of 1.5.If

question 7

Multiple Choice

A monopsonist faces a constant elasticity of labor supply of 1.5.If the monopsonist pays $15 per hour,its marginal expenditure equals

• A) $15.
• B) $25.
• C) $7.
• D) 25%.

---

Definitions:

Income

The monetary payment received for labor, services, or investment, constituting the financial resource individuals, businesses, or governments use for spending and saving.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan balance.

Utility Function

A formula that assigns numerical values to utilities in order to represent a consumer's preferences consistently. (Duplicate rephrase)

Consumption

Individuals or households utilizing goods and services.