For a Monopsonist the Marginal Cost of Increasing Its Workforce

question 38

Multiple Choice

For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because

• A) there is not good factor substitution in a monopsony.
• B) the wage rate offered the newest employee must be paid to all workers.
• C) the industry will be a closed shop.
• D) a normal rate of return must be paid to the owner.

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Definitions:

Reinforcement

In behavioral psychology, a process that increases the likelihood of a behavior repeating by applying consequences (positive or negative).

Behaviour Genetics

The field of study that examines the role of genetic and environmental influences on behaviors.

Identical Twins

Twins who are genetically identical because they were formed from a single fertilized egg that split into two.

Individualism

A social theory favoring freedom of action for individuals over collective or state control, often associated with the value of self-reliance and personal independence.