Monopsonistic firms-Pay lower wages

I have a problem in economics on Monopsonistic firms-Pay lower wages. Please help me in the following question. Relative to the firms hiring in a competitive labor market, the monopsonistic firms tend to: (1) Hire more workers. (2) Hire labor up to a point where VMP = w. (3) Sell output at prices surpassing labor's marginal revenue product. (4) Pay the lower wages.

What is most accurate answer.

View Complete Question

Related Questions in Microeconomics

Q : Stabilization function Choose the right

Choose the right answer of thefollowing problem. In performing its stabilization function, it may be appropriate for the nation's central bank (the Federal Reserve in the United States) to take actions to: A) increase taxes to reduce inflation. B) increase interest ra

Q : Minimum wage laws for unskilled and

The capability of unskilled workers to compete against skilled workers for jobs tends to be decreased by: (1) progressive income taxes. (2) laws which impose excessive legal minimum wages. (3) speculation and arbitrage. (d) inflationary balance of trade deficits. (5)

Q : Profit-maximizing unregulated monopoly

No profit-maximizing unregulated monopoly will function in the inelastic portion of the demand curve this faces since: (w) marginal revenue is negative. (x) total revenues are negative. (y) total revenue falls as less is produced. (z) marginal revenue

Q : Greatest strategy for maximizing profit

Monsieur Cournot contains a monopoly on an artesian well from that flows tasty spring water reputed to have medicinal properties. To ignore incurring any variable costs, he is adamants that customers bring their own pails also fill th

Q : Motivation behind granting patent rights

Normal 0

Q : Competitive market Select the right

Select the right answer of the question. A competitive market will: A) achieve an equilibrium price. B) produce shortages. C) produce surpluses. D) create disorder.

Q : Decrement in opportunity costs and

Opportunity costs and prices tend to be decreased by: (w) competition among speculators and other intermediaries. (x) price floors. (y) the exercise of monopoly power. (z) price ceilings. How can I

Q : Horizontal individual demand curves The

The market demand curve is recognized by: (i) Vertically summing up individual demand curves. (ii) Graphing intersections of demand and supply over time. (iii) Holding quantity constant while summing up each price on demand curve. (iv) Horizontally summing up individu

Q : Quality and safety in Adverse Selection

The popular sporting goods magazine publishes a report on quality and safety of different brands of ski equipment. This report would be most probable to determine a problem consumer’s face since of: (i) Adverse selection. (ii) Brand-name bias. (iii) High priced

Q : Ratio of perfect equality and Lorenz

The ratio of the area between the perfect equality reference line and the Lorenz curve is the: (w) Gini index. (x) relative income (y) poverty line (z) marginal productivity standard.

Discover Q & A

Leading Solution Library

Avail More Than 1435279 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1929785
Asked

3,689

Active Tutors

1435279

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment