Universities Are Able to Act as Monopsonists in the Market

question 101

Multiple Choice

Universities are able to act as monopsonists in the market for professors because

• A) a university usually does not consider hiring faculty members from another institution.
• B) faculty members usually have to move to a different city when changing universities.
• C) students like all of their professors.
• D) senior faculty members are willing to move to a new university at any cost.

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Definitions:

Cost Center

A department or segment of a business that does not directly generate revenue but incurs costs, focusing instead on controlling expenses.

Cost Center

A department or unit within an organization that does not directly add to profit but still incurs costs, like HR or customer service departments.

Gross Profit

Income from sales or services minus the cost of goods sold; it measures how efficiently a company uses labor and supplies in production.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor, used to determine gross profit.