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:

Satisfaction Guarantee

A promise or assurance given by a company that a customer will be pleased with a product or service, or a refund or replacement will be offered.

Strategic Point

A critical factor or position within a strategic plan that can significantly influence the success or failure of said plan.

Nonmonetary Costs

Costs associated with a purchase that are not financial, such as time spent, effort, and emotional stress.

Opportunity Costs

The value of the best alternative forgone when a decision is made to pursue a particular action or investment.