Author Question: Suppose the marginal value curve for a monopsonist is MV = 70 - Q, and the marginal expenditure ... (Read 214 times)

NguyenJ · **on:** Jul 1, 2018

Suppose the marginal value curve for a monopsonist is MV = 70 - Q, and the marginal expenditure curve is ME = 10 + 2Q. What is the optimal price paid by the monopsonist?

A) P = 20
B) P = 50
C) P = 60
D) We need to know the AE curve in order to determine the optimal price

Question 2

Use the following statements to answer this question: I. Corporate paper rates are typically less than one percent higher than Treasury bill rates. II. Treasury bill rates may be viewed a short-term, risk-free rates.

A) I and II are true.
B) I is true and II is false
C) II is true and I is false
D) I and II are false