Which Statement Best Describes the Behavior of the Monopsonist in the Labor

question 311

Multiple Choice

Which statement best describes the behavior of the monopsonist in the labor market?

• A) It restricts its output to keep the product price high.
• B) It hires less labor but pays the perfectly competitive wage rate.
• C) It must pay different amounts to each unit of labor hired.
• D) It hires less labor and pays a lower wage rate than in the perfectly competitive case.

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Definitions:

Fructus Industrials

Crops that are planted and harvested by human labor, such as wheat or corn.

Trade Fixture

Personal property that a tenant installs on leased premises for business purposes, which can be removed at the lease's termination.

Constructive Eviction

An eviction that occurs by the act of the landlord depriving the tenant of something of a substantial nature that was called for under the lease.