In order to hire an additional worker, a monopsony must pay A) ...

[sam.t96]

In order to hire an additional worker, a monopsony must pay
 
  A) a higher wage rate than it paid before.
  B) the same wage rate it paid before.
  C) a lower wage rate than it paid before.
  D) a wage rate that is sometimes higher, sometimes lower, and sometimes the same as before, depending on the elasticity of the supply of labor.

Question 2

Prime Pharmaceuticals has developed a new asthma medicine, for it has a patent. An inhaler can be produced at a constant marginal cost of 2/inhaler.
 
  The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are in the figure above. With its patent giving it a monopoly for its new inhaler, if it is a single-price monopoly, Prime Pharmaceuticals will produce ________ inhalers and set a price of ________ for each inhaler. A) 16 million; 2
  B) 10 million; 5
  C) 8 million; 6
  D) 8 million; 2

[Liddy]

Answer to Question 1

A

Answer to Question 2

C

[sam.t96]

Thanks for the timely response, appreciate it

[diana chang]

Excellent