A Monopsonist Is Currently Employing 50 Workers at $10 an Hour

question 147

Multiple Choice

A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost is

• A) ten cents.
• B) $10.00.
• C) $10.10.
• D) $15.10.

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Definitions:

Qualifying Person

An individual who meets the IRS criteria to be claimed as a dependent for tax purposes, such as a child or relative.

Principal Place

The primary location where a business operates or conducts its main activities.

Qualifying Widow(er)

A tax filing status available to a widowed spouse with a dependent child, offering benefits similar to the Married Filing Jointly status for two years following the year of the spouse's death.

Personal Exemption

A deduction allowed by the IRS for taxpayers, their spouses, and dependents, significantly reduced to $0 for tax years 2018 through 2025 under the Tax Cuts and Jobs Act.