A Monopsonist Finds Its Profit Maximizing Quantity of Labor Employed

question 266

Multiple Choice

A monopsonist finds its profit maximizing quantity of labor employed at the point at which

• A) marginal revenue product is zero.
• B) marginal revenue product equals marginal factor cost.
• C) marginal factor cost is zero.
• D) total cost equals total revenue.

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Definitions:

Kinesis

A movement or activity of a cell or an organism in response to a stimulus, but not directionally oriented toward or away from the source of the stimulus.

Emotionally Aroused

A state of heightened physiological and psychological activity and responsiveness to stimuli, often associated with intense feelings or emotions.

Persuade

The action of convincing someone to do or believe something through reasoning or argument.

Happy

A state of well-being and contentment characterized by positive emotions ranging from pleasure to intense joy.