Use the Following to Answer Question(s): Minimum Wage and Monopsony

question 179

Multiple Choice

Use the following to answer question(s) : Minimum Wage and Monopsony

-(Exhibit: Minimum Wage and Monopsony) In the absence of a minimum wage, the monopsony firm in the exhibit would maximize profits by hiring _______ units of labor per period, and setting the wage at _______ .

• A) L₁; $35
• B) L₁; $20
• C) L₂; $30
• D) L₃; $50