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.

---

Definitions:

Capacity Utilization Rate

A metric used to measure the degree to which a firm or economy is operating at its full potential or maximum efficiency.

Investment

The action or process of allocating resources, usually money, in order to generate income or profit.

Inventory Computerization

The use of computer systems and software to manage and track product inventories in businesses.

Net Investment

The overall expense incurred on new capital assets, reduced by the depreciation value of the existing capital assets.