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.

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Definitions:

Interposition

A visual cue in which one object partially covers another, indicating that the former is closer to the viewer.

Depth Perception

The ability to perceive the distance of an object or the spatial relationship between objects, allowing us to move through the world safely and efficiently.

Light Originates

The initial source or generation of light, a form of electromagnetic radiation that enables visual perception.

Sound Waves

Vibrations that travel through air or another medium and can be heard when they reach an ear or a detecting device.