A Monopolist Produces a Good Using Only One Factor, Labor

question 5

Multiple Choice

A monopolist produces a good using only one factor, labor.There are constant returns to scale in production, and the demand for the monopolist's product is described by a downward-sloping straight line with slope 21.The monopolist faces a horizontal labor supply curve.If the monopolist chooses output to maximize profits, then the marginal

• A)cost of labor to the monopolist exceeds the wage.
• B)product of labor times the price of output equals the wage.
• C)product of labor times the price of output is less than the wage.
• D)product of labor times the price of output exceeds the wage.
• E)revenue product of labor is less than the wage.

---

Definitions:

Society's Wealth

The collective value of all economic resources and assets owned by the individuals and institutions within a society.

Deontological Approach

A theory in ethics that determines morality based on adherence to rules or duties, rather than the outcomes of actions.

Ethical Fundamentalism

The belief in absolute moral rules that apply universally, guiding actions and decision-making.

Utilitarianism

A philosophical theory that suggests the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.