A Perfectly Discriminating Monopsonist Pays Each Worker His or Her

question 28

Multiple Choice

A perfectly discriminating monopsonist pays each worker his or her reservation wage. This results in

• A) the firm receiving zero profit.
• B) the firm substituting capital for labor.
• C) the firm receiving all of the surplus.
• D) the firm avoiding payroll taxes.
• E) workers being unwilling to work at the offered wage.

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Definitions:

Existing Traits

Characteristics or attributes of organisms that are already present in a population due to evolutionary processes.

Minority Domination

A situation where a smaller or less powerful group controls or influences a larger group or organization.

Group Decision Making

A process in which multiple individuals come together to analyze problems or situations and make decisions as a collective.

Pressure to Conform

The social force that encourages individuals to adjust their behaviors, beliefs, or actions to align with group norms.