A Monopsony Can Hire One Worker at a Wage of $5,two

question 33

Multiple Choice

A monopsony can hire one worker at a wage of $5,two workers at a wage of $6 each,three workers at $7 each,and so on (each added worker adding one dollar to the wage rate) .If the marginal revenue product for all workers is $16,what wage will it pay?

• A) $10
• B) $11
• C) $16
• D) $17

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Definitions:

Learning Curve

The concept that describes how new skills or knowledge can be acquired more efficiently over time, leading to decreased costs and increased productivity.

Long-run Average Cost

The average cost per unit of output over time when all inputs, including capital, are variable, showing economies or diseconomies of scale.

Inflation Adjusted Dollars

A monetary measurement adjusted for changes in the price level over time, reflecting the real value of currency.

Learning Curve

A learning curve illustrates the rate of improvement in performing a task or the increase in efficiency achieved by repetition of a process or activity.