In Exhibit 11-12, we know this exhibit shows a monopsonistic labor market becaus

ID: 2494389 • Letter: I

Question

In Exhibit 11-12, we know this exhibit shows a monopsonistic labor market because:
:

a. the MFC curve lies above the supply of labor curve.

b. the market supply of labor curve is horizontal.

c. the MRP curve slopes down.

d. the MRP curve lies below the supply of labor curve.

e. wages are below the supply of labor curve.

In Exhibit 11-10, the marginal factor cost of the 9th employee is:

Select one:

a. $13.

b. $21.

c. $15.

d. $135.

e. $23.

Marginal revenue product is measured by:

Select one:

a. TR / MP.

b. MR ´ MC.

c. MR ´ price.

d. MP ´ price.

e. TC / MP.

Labor Wage 6 $12 7 13 8 14 9 15 10 16

C) MRP CURVE SLOPES DOWN.

E) $23 [9*15 - 8*14 = 135 - 112 = $ 23.]

B) MR / MP CHANGE IN TOTAL REVENUE / CHANGE IN TOTAL VARIABLE COST.