The Gap Between the Value a Monopsony Places on the Last

question 74

Multiple Choice

The gap between the value a monopsony places on the last worker hired and the wage paid will increase when

• A) the supply curve becomes more elastic at the optimum.
• B) the supply curve becomes less elastic at the optimum.
• C) the supply curve becomes horizontal.
• D) the value of the last unit of labor hired is greater than the cost.

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