Author Question: BigBiz, a local monopsonist, currently hires 50 workers and pays them 6 per hour. To attract an ... (Read 49 times)

piesebel · **on:** Jun 30, 2018

BigBiz, a local monopsonist, currently hires 50 workers and pays them 6 per hour. To attract an additional worker to its labor force, BigBiz would have to raise the wage rate to 6.25 per hour. What is BigBiz's marginal factor cost?
a. 6.25 per hour.
b. 12.50 per hour.
c. 18.75 per hour.
d. 20 per hour.

Question 2

The U.S. federal income tax is progressive, which means that _____.
a. tax receipts grow at the same rate that income does
b. tax receipts grow at the same rate that government spending does
c. middle-income individuals pay more in taxes than either high-income or low-income individuals
d. the tax rate decreases with increases in income.
e. high-income individuals are taxed at a higher rate than low-income individuals