Author Question: In order to hire an additional worker, a monopsony must pay A) a higher wage rate than it paid ... (Read 110 times)

sam.t96 · **on:** Jun 29, 2018

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