A Monopsonist

question 53

Multiple Choice

A monopsonist:

• A) faces a downward-sloping demand curve and by lowering the quantity he sells, he can charge more.
• B) faces a horizontal demand curve and by raising price, he will lose all of his consumers.
• C) faces an upward-sloping supply curve and by lowering the quantity he buys, he can pay less.
• D) faces a downward-sloping supply curve and by increasing the quantity he buys, he can pay less.

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Definitions:

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A complex structure equipped for drilling wells into the earth to extract oil and natural gas.

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Human capital or workforce available for the production of goods and services in an economy.

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A professional who writes, tests, debugs, and maintains the code that allows software programs and applications to function.

Budget Line

A graphical representation showing the combination of goods a consumer can purchase with a fixed income.