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

question 147

Multiple Choice

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

-(Exhibit: Minimum Wage and Monopsony) If a $30 minimum wage is imposed, the monopsony firm in the exhibit would maximize profits by hiring _______ units of labor per period at the wage _______ .

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