Which of the Following Is a True Statement

question 5

Multiple Choice

Which of the following is a true statement?

• A)Monopolists employ too many labor resources,because the value of the marginal product exceeds the marginal opportunity cost of labor
• B)For a monopolist,the marginal revenue product of labor exceeds marginal wage at the profit maximizing level of employment
• C)Monopolists pay a lower wage than competitors for the same type of labor
• D)The monopolist's demand for labor curve is less elastic than if it were a competitor in the sale of its output.

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Definitions:

Monopoly Power

The ability of a monopolist to significantly control market price and exclude competitors by owning a majority of the market share.

Demand Function

A mathematical relationship expressing the quantity of an item demanded at various prices.

Marginal Costs

The amount spent to produce a further unit of a good or service.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.