Suppose Your Firm Is a Monopsonist Hiring Only One Variable

question 74

Multiple Choice

Suppose your firm is a monopsonist hiring only one variable input.If you want to maximize profits,you will purchase that variable input up to the point where the

• A)demand curve intersects the supply curve of the input.
• B)MRP curve for the input intersects the marginal cost curve for the input.
• C)wage rate is the highest.
• D)marginal product of that input equals the price of one unit of the input.
• E)cost of the input equals the profit generated by the employment of that input.

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Definitions:

Sternberg's Factors

Components of intelligence according to Robert Sternberg, typically including analytical, creative, and practical aspects.

Age

A measure of the amount of time an individual or entity has existed, typically expressed in years.

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The capability to solve new problems, use logic in new situations, and identify patterns without relying on pre-existing knowledge.

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