The Optimal Level of Employment for a Monopsonist Is Set

question 37

Multiple Choice

The optimal level of employment for a monopsonist is set at the point where the

• A)Wage rate equals the VMP_L
• B)Wage rate equals the marginal factor cost
• C)Marginal factor cost equal to the MRP_L
• D)Supply of labor equals the marginal factor cost

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Definitions:

Quarterly Dividends

Payments made by a corporation to its shareholders, usually on a quarterly basis, from its profits or reserves.

Capital Gains

The profit from the sale of assets or investments when the selling price exceeds the original purchase price.

Shares

Units of ownership interest in a corporation or financial asset, giving the shareholders a proportionate claim on the company’s earnings and assets.

Quarterly Dividends

Dividends paid by a corporation to its shareholders at the end of each quarter.