A Monopsonistic Employer

question 85

Multiple Choice

A monopsonistic employer:

• A) has a perfectly elastic labor supply curve.
• B) is necessarily a monopolist in the product market.
• C) confronts a marginal resource (labor)cost that is greater than the wage rate.
• D) confronts a marginal resource (labor)cost that is less than the wage rate.

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Definitions:

Commission

A fee paid to an agent or employee for transacting a sale or performing a service, often a percentage of the sale amount.

Consignment

The act of giving goods to another party to sell on your behalf, but retaining ownership until the goods are sold.

Gross Cost

Gross Cost refers to the total expense incurred before any deductions, such as discounts or rebates, providing a raw figure of the financial outlay for a purchase or project.

Commission

A fee paid for provided services, typically a percentage of the transaction value, often used in sales, brokerage, and real estate transactions.