Author Question: Because the marginal cost of labor curve lies above the labor supply curve, a monopsony will pay a ... (Read 46 times)

luvbio · **on:** Jun 29, 2018

Because the marginal cost of labor curve lies above the labor supply curve, a monopsony will pay a wage that is

A) equal to the wage paid in a competitive market.
B) equal to value of marginal product.
C) greater than value of marginal product.
D) less than the wage paid in a competitive market.

Question 2

The above figure shows the demand and supply curves for high-skilled and low-skilled labor. The wage differential between high-skilled and low-skilled labor is

A) 4.00.
B) 5.00.
C) 6.00.
D) 7.00.