Please finish carefully, I will give u a thumb up, Thanks! If the factor supply

Question

Please finish carefully, I will give u a thumb up, Thanks!

If the factor supply curve facing a monopolist is the market supply curve, and if the market supply curve is an upward sloping straight line, the marginal expenditure curve Select one: O a. lies below the market supply curve O b. lies above the market supply curve c. is the market supply curve d. crosses the market supply curve at the market wage rate In the situation involving a bilateral monopoly, a Select one O a. single firm acts as both the monopsonist and the monopoly b. single seller sells to a single buyer c. monopsonist sells to a monopsonist. d. monopolist sells to a monopolist. Suppose a labour market has perfectly inelastic supply that is composed of union and non-union workers, and there is wage discrimination in the union and nonunion sectors. If the union shifts its policy from maximizing total economic rents to maximizing total wages earned by members, what happens to the equilibrium employment level and wage for non-union workers? Select one: a. both increase b. employment increases and wage declines c. wage increases and employment declines d. both decline

Explanation / Answer

1) Solution: lies above the market supply curve

Explanation: As the supply curve is the upward-sloping part of the marginal cost (MC) curve, thus anything which affects MC will affect the supply curve in the similar approach

2) Solution: single seller sells to a single buyer

Explanation: A bilateral monopoly is a market which consists of one buyer and one seller.

3) Solution: wage increases and employment declines

Explanation: As the labour market has perfectly inelastic supply in wage discriminating market, thus a shifting of policy from rent maximization to wage maximisation would lead to an increase in wages and a fall in employment level

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