Author Question: A monopsonist firm pays a price to a factor that is: a. equal to the marginal revenue product of ... (Read 103 times)

naturalchemist · **on:** Jun 30, 2018

A monopsonist firm pays a price to a factor that is:
a. equal to the marginal revenue product of the factor.
b. greater than the marginal revenue product of the factor.
c. equal to the marginal factor cost.
d. greater than the marginal factor cost.
e. less than the marginal revenue product of the factor.

Question 2

Which of the following is true with regard to minimum wages?
a. A minimum wage does little to alleviate poverty.
b. A minimum wage helps deal with the problem of poverty.
c. A minimum wage leads to a surplus or unemployment in the skilled labor market.
d. A minimum wage adversely affects the unskilled laborers between the age group 40 and 45.
e. A minimum wage helps provide employment to teenagers and improve their standard of living.