This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain why a monopsonist's marginal factor cost curve must lie above its labor supply ... (Read 177 times)

nmorano1

  • Hero Member
  • *****
  • Posts: 598
on: Jun 30, 2018
Explain why a monopsonist's marginal factor cost curve must lie above its labor supply curve.

Question 2

Recent studies on the effectiveness of fiscal policy tend to suggest that the government spending multiplier is less than 1.0.
 a. True
  b. False
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

meganmoser117

  • Sr. Member
  • ****
  • Posts: 303
Reply #1 on: Jun 30, 2018
Answer to Question 1

The labor supply curve shows the wage rate to be paid in order to hire each additional unit of labor. For a monopsonist, when it offers higher wages to attract additional units of labor, it must also pay the higher wage to all other workers. Therefore, the change in total labor cost rises even faster than the average wage rate, and hence the MFC curve will lie above the labor supply curve.

Answer to Question 2

True


nmorano1

  • Member
  • Posts: 598
Reply 2 on: Jun 30, 2018
:D TYSM

parshano

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

The titration curve of acetic acid The titration curve of acetic acid
Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of
How to Factor a Difference of Squares How to Factor a Difference of Squares
Inferring Productivity from Data on Output and Factor Accumulation Inferring Productivity from Data on Output and Factor Accumulation
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Which of the following is not a unit factor related to a 15.0% aqueous solution Which of the following is not a unit factor related to a 15.0% aqueous solution
Video: Cardiac Cycle (Part 4 of 4)

For a complete list of videos, visit our video library