Suppose That a Monopsonist Increases the Number of Workers Hired

question 56

Multiple Choice

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

• A) $11.
• B) $21.
• C) $100.
• D) $121.

---

Definitions:

Utmost Good Faith

A principle requiring parties to a contract to act honestly and not mislead or withhold critical information from one another.

Statutory Requirements

Legal obligations or rules that are established and enforced by legislation.

Powers of Attorney

A legal document that allows one person (the principal) to appoint another person (the agent or attorney-in-fact) to make financial, legal, and health decisions on their behalf.

Junior Account Executive

An entry-level position in sales or advertising, responsible for managing client accounts and supporting senior executives.