Compared to a monopsony, a perfectly competitive labor market ...

[FButt]

Compared to a monopsony, a perfectly competitive labor market results in a
 
  A) higher wage rate and more workers hired.
  B) higher wage rate and fewer workers hired.
  C) lower wage rate and more workers hired.
  D) lower wage rate and fewer workers hired.

Question 2

Based on the data in the above table, to assure that the efficient amount is produced the government can
 
  A) subsidize the suppliers 8 per unit.
  B) subsidize the suppliers 2 per unit.
  C) tax suppliers 2 per unit.
  D) tax suppliers 8 per unit.

[srodz]

Answer to Question 1

A

Answer to Question 2

C