A Price Discriminating Monopsonist Could Increase Its Profits by

question 2

Multiple Choice

A price discriminating monopsonist could increase its profits by

• A)paying the minimum wages possible.
• B)hiring as little capital as possible.
• C)paying lower wages to workers with inelastic supply of labor curves than to workers with elastic curves.
• D)paying lower wages to workers with elastic supply of labor curves than to workers with inelastic curves.

---

Definitions:

Responsibility Centers

Units or departments within an organization, each accountable for its own activities and financial results.

Investment Center

An investment center is a business unit within an organization that has control over its revenues, expenses, and investments, and is evaluated based on its return on investment.

Franchise Fee

An initial payment made by a franchisee to a franchisor for the rights to use the franchisor's brand, system, and ongoing support.

Percent

A measure or ratio expressed as a fraction of 100.