If the Supply of Labor to a Monopsonist Is Everywhere

question 45

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)50¢.
• B)75¢.
• C)$1.
• D)$2.

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Definitions:

Legal Fees

Costs incurred for legal services, which can sometimes be deductible on a tax return depending on the nature of the legal issue.

Casualty Loss

A casualty loss is a sudden, unexpected, or unusual loss of property resulting from events like natural disasters, accidents, or theft, which can be deductible under certain conditions for tax purposes.

Non-recognition

A tax principle allowing certain transfers or exchanges of property to occur without immediate tax consequences.

Involuntary Conversion

A forced change of property ownership or destruction, such as through theft or natural disaster, that may have tax implications.