In Figure 31

question 66

Multiple Choice

In Figure 31.2, what is the difference between the marginal revenue product of the last worker hired by the monopsonist and the wages the monopsonist pays the last worker?

• A) $3 per hour.
• B) $5 per hour.
• C) $4 per hour.
• D) $2 per hour.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, denoted as an expense within the income statement.

Note Payable

A written agreement that represents a promise to pay a specified amount of money on demand or at a designated future date.

Journal Entries

The recording of financial transactions in a company's accounting system.

Insurance Policy

A contract between an individual or entity and an insurance company, outlining the terms for premium payments and the conditions under which claims will be paid.