____ Must Exist in Order for Gains from Trade to Be

question 76

Multiple Choice

____ must exist in order for gains from trade to be realized.

• A)Governments
• B)Markets
• C)Households
• D)Interaction
• E)Firms

---

Definitions:

Marginal Wage Cost

The additional cost incurred by hiring an extra unit of labor, essentially the change in total wage cost from hiring one more employee.

Monopsonistic Labor Market

A market situation in which there is only one buyer (employer) for many sellers (workers), allowing the buyer to exert considerable control over wages and employment conditions.

MRP

Marginal Revenue Product; the additional revenue generated by employing one more unit of a factor, such as labor or capital.

Marginal Revenue Product

The additional revenue a firm earns by employing one more unit of input, like labor or capital, in the production process.