The Wage Rate That a Monopsonist Would Find Most Profitable

question 18

Multiple Choice

The wage rate that a monopsonist would find most profitable is the wage

• A)At the intersection of the marginal wage curve and the marginal cost curve.
• B)On the labor supply curve corresponding to the level of employment at which the marginal factor cost curve (for labor)intersects the labor demand curve.
• C)On the labor demand curve corresponding to the level of employment at which the marginal factor cost equals market supply.
• D)On the labor demand curve at the wage where the marginal factor cost curve intersects the demand curve for labor.

Analyze the effects of positive and negative externalities on private and social costs and benefits.

Evaluate the role of government interventions such as taxes, subsidies, and regulations in correcting market inefficiencies caused by externalities.

Distinguish between private and social values/costs in the context of externalities.

Recognize the significance of internalizing external costs and benefits to achieve social efficiency.

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Definitions:

Marginally Attached Workers

Individuals who are not in the labor force but want and are available to work, and have looked for a job sometime in the past 12 months but not in the four weeks preceding the survey.

Spells Of Unemployment

Periods of time during which an individual is unemployed but actively seeking work.

Frictional Unemployment

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills

Job Losers

Individuals who have been involuntarily terminated or laid off from their employment.