Which Is Characteristic of Monopsony

question 121

Multiple Choice

Which is characteristic of monopsony?

• A) The type of labor employed is relatively mobile.
• B) The supply curve for labor lies above the marginal resource cost curve.
• C) The wage rate it must pay workers varies directly with the number of workers it employs.
• D) The firm's employment is a small portion of the total employment of that type of labor.

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Definitions:

Type II Error

The error made when a false null hypothesis is not rejected, missing the detection of a real effect.

Type I Error

The mistake of rejecting the null hypothesis when it is actually true.

Null Hypothesis

The default hypothesis that there is no effect or no difference, and any observed effect is due to sampling variability.

Type I Error

The probability of rejecting the null hypothesis when it is actually true, also known as a false positive.