A Monopsony's Marginal Worker Has a Marginal Revenue Product of $12

question 12

Multiple Choice

A monopsony's marginal worker has a marginal revenue product of $12 an hour and a wage of $8.A minimum wage of $10 will have which of these effects?

• A) decrease the average hourly cost of a worker
• B) decrease the marginal hourly cost of a worker
• C) increase the marginal revenue product of the marginal worker
• D) increase the firm's average profit per worker

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Definitions:

Perceptual Selection

The process by which individuals filter and select informational cues from the environment based on relevance and personal biases.

Perceptual Sets

Psychological mechanisms that influence how people perceive and interpret sensory information based on their expectations and prior experiences.

Internal Factor

An influence, element, or condition within an organization that affects its operations and outcomes.

Person Perception

The process of forming impressions and making judgments about other people's traits, intentions, and behaviors.