Suppose That a Monopsonist Increases the Number of Workers Hired

question 115

Multiple Choice

Suppose that a monopsonist increases the number of workers hired from 10 to 11.If the market wage increases from $20 per worker to $21 per worker, the marginal factor cost for the eleventh worker is:

• A) $20.
• B) $21.
• C) $31.
• D) $231.

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Definitions:

Beet Fiber

A byproduct of sugar beet processing that is used as a dietary fiber supplement or in the production of biodegradable products.

Refined Sugar

Sugar that has been processed to remove impurities and achieve a desired level of purity.

Intermediate Products

Goods that are produced by one company to be further processed by another company into final products.

Split-off Point

The stage in a production process where joint products can be recognized as distinct products, each capable of being sold or processed further independently.