If the market were perfectly competitive instead of dominated by ...

[cdr_15]

If the market were perfectly competitive instead of dominated by a monopsonist, what would the equilibrium wage and level of employment be?
 a. W1 and E1
  b. W2 and E0
  c. W0 and E0
  d. W0 and E1
  e. W0 and E2

Question 2

If the price of X falls, the budget constraint
 a. shifts outward in a parallel fashion.
  b. shifts inward in a parallel fashion.
  c. rotates outward about the X-intercept.
  d. rotates outward about the Y-intercept.

[bfulkerson77]

Answer to Question 1

A

Answer to Question 2

d