A Monopsonist Is Currently Paying Its 1,000 Workers $5

question 48

Multiple Choice

A monopsonist is currently paying its 1,000 workers $5.00 per hour.However,its marginal wage cost is $6.00 per hour.If the government sets a minimum wage of $5.50,then:

• A)employment at this firm will rise
• B)employment at this firm will fall
• C)employment at this firm will be unaffected
• D)employment at this firm will rise but the firm's total wage bill will fall

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Definitions:

Women-Owned Businesses

Businesses that are at least 51% owned, controlled, and operated by one or more women.

Past Decades

Refers to the previous ten-year periods, looking backward from the current date, emphasizing historical trends or changes.

Human Resources

The department within an organization that manages employee relations, recruitment, training, and compensation.

Change and Ambiguity

Refers to the uncertainties and unpredictabilities that come with alterations in circumstances, conditions, or environments.