Author Question: Which of the following statements is TRUE when comparing monopsony and competitive labor markets? ... (Read 46 times)

jon_i · **on:** Jul 1, 2018

Which of the following statements is TRUE when comparing monopsony and competitive labor markets?

A) The monopsony hires more workers but pays a lower wage.
B) The monopsony hires more workers at a higher wage.
C) The monopsonist's wage is lower and quantity of labor higher than would prevail under competition.
D) The monopsonist's wage and quantity of labor are lower than would prevail under perfect competition.

Question 2

Having a refundable deposit for recyclable material

A) raises the marginal private cost of disposal.
B) raises the marginal social cost of disposal.
C) lowers the marginal private cost of disposal.
D) lowers the marginal social cost of disposal.
E) does not affect disposal costs.