Given the Same Demand and Cost Functions,which of the Following

question 27

Multiple Choice

Given the same demand and cost functions,which of the following is true of a monopsony input market as compared to a competitive input market?

• A)The employment of inputs is lower in a monopsony market
• B)The employment of inputs is the same in both markets.
• C)The price paid for inputs is higher in a monopsony market.
• D)The price paid for inputs is the same in both markets.

---

Definitions:

Compassion

A deep awareness of and sympathy for another's suffering, coupled with the desire to alleviate it.

Emotional Turmoil

A state of great disturbance, confusion, or uncertainty, typically relating to one's feelings or emotions.

Adversity

Difficulties or misfortunes that one may encounter in life.

Galatea Effect

The phenomenon by which individuals improve their performance in response to their own self-expectations or belief in their ability to succeed.