Which of the Following Is True for a Firm That

question 89

Multiple Choice

Which of the following is true for a firm that is an input market monopsony?

• A)In order to increase employment of the input,the firm must lower the wage rate.
• B)The price that the monopsonist pays for the input is determined by the height of the input demand curve.
• C)The marginal cost of the input exceeds the average cost of the input.
• D)The wage paid will equal the marginal cost of the labor input.

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Definitions:

Exchange-traded Fund

A type of investment fund and exchange-traded product, i.e., they are traded on stock exchanges. ETFs hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism designed to keep it trading close to its net asset value.

SPDR

Specialty financial products known as Spider, they are exchange-traded funds (ETFs) that attempt to mimic the performance of a specific index, such as the S&P 500.

Spider

A nickname for SPDR (Standard & Poor's Depositary Receipts), a type of exchange-traded fund that mimics the performance of the S&P 500.

12b-1 Charges

Fees associated with mutual funds, charged annually for fund distribution and marketing costs, embedded in the fund's expense ratio.