Two Employers Pay a Wage of $10 an Hour

question 32

Multiple Choice

Two employers pay a wage of $10 an hour.Employer A is a monopsony while Employer B hires in a competitive labor market.Both firms sell their output in competitive markets.Which of the following will be true?

• A) The marginal worker in both firms will add the same to the firm's revenue.
• B) If a worker left employer A and joined employer B, the economy would be better off.
• C) Employer A has a higher average wage cost per worker than Employer B.
• D) It will cost employer A more to hire another worker.