82. Wage and MFC differ for a monopsonist because: A) any wage increase applies
ID: 1240688 • Letter: 8
Question
82.
Wage and MFC differ for a monopsonist because:
A) any wage increase applies to all workers, not just to the next hired.
B) the monopsonist must accept the market wage rate.
C) workers are not as efficient when employed by a monopsonist.
D) wage rate decreases force workers to work longer hours.
E) the monopsonist is forced to pay a wage greater than the worker's MFC.
A monopolistically competitive firm will:
A) shut down if price is less than average variable cost.
B) maximize profits by producing where MR = MC.
C) not likely earn an economic profit in the long run.
D) all of these.
86.
The monopolistic competition market structure is characterized by:
A) many firms and differentiated products.
B) few firms and similar products.
C) few firms and a homogeneous product.
D) many firms and a homogeneous product.
87.
Exhibit 11-11 Labor wage and cost data
Labor
Wage
TWC
MFC
10
$
$ 50.00
$
11
5.80
12
17.80
13
102.70
14
126.00
15
46.50
In Exhibit 11-11, the wage required to hire 14 employees is equal to:
A) $8.80.
B) $9.50.
C) $9.00.
D) $5.50.
E) $8.10.
88.
Diseconomies of scale exist for all of the following reasons except:
A) organizational problems.
B) management problems.
C) firm size is too small.
D) failures in information flows.
E) bureaucratic inefficiencies.
93.
In order for the law of diminishing returns to be present, we must have:
A) simultaneous changes in labor and capital.
B) double the output when labor input is doubled.
C) at least one factor of production to be fixed.
D) the price of labor increasing as more workers are hired.
Labor
Wage
TWC
MFC
10
$
$ 50.00
$
11
5.80
12
17.80
13
102.70
14
126.00
15
46.50
Explanation / Answer
A monopolistically competitive firm will shutdown if theirprice is less than variable cost as do all other firms.Monopolistically competitive firms produces at MR=MC and set priceat Demand at that quantity. Monopolistically competitive firms arenot going to earn economic profits in the long run as other firmswill enter the market if there is positive economic profit. D isthe answer
A monopolistically competitive is where many competingproducers sell products that are differentiated from one another sothe answer is A
Diseconomies of scale could stem from inefficientmanagerial or labor policies, over-hiring or deterioratingtransportation networks (external DS). Furthermore, as a company'sscope increases, it may have to distribute its goods and servicesin progressively more dispersed areas. This can actually increaseaverage costs resulting in diseconomies of scale. So the answer isC it isnt a result of small business size
Diminishing marginal product is the decrease of output aslabor is increased so the answer is E
Monopolistically competitive firms produce at MR=MC tomaximize profit. They charge the price where demand meets theoutput. D is your answer
Total wage cost is Wage*workers 30*12 = 360 D is the answer
The short run supply curve for a perfectly competitive firm isthe MC curve at and above the shutdown point. The shutdown point isthe minimum level of average variable cost. C is the answer
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