Compared to the Allocatively Efficient Amount,a Monopsonist Tends to Hire

question 12

Multiple Choice

Compared to the allocatively efficient amount,a monopsonist tends to hire:

• A)too few workers because the value of marginal product exceeds marginal revenue product
• B)too few workers because marginal wage cost exceeds the wage rate
• C)too many workers because the value of marginal product exceeds marginal revenue product
• D)too many workers because marginal wage cost exceeds the wage rate

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Definitions:

Minimum Wage

The lowest legal hourly pay rate that employers can pay to workers, established by government law or regulation.

Executive Workers

Individuals who hold high-ranking positions within an organization, overseeing its management and making major decisions concerning its operation.

Sexual Harassment

Unwanted or inappropriate sexual advances, requests for sexual favors, and other verbal or physical behavior of a sexual nature, which can create a hostile work environment.

Small Business

A business owned by an individual, partners, or a private group, characterized by having a smaller workforce and generating lower yearly income compared to larger corporations or standard businesses.