Refer to the following diagram ofa monopsonistic labor market. MWC W3 W2 W, MRP Q, Q2 Q3 Labor If legislation set the minimum wage at W2, then employment A) would fall from its original monopsony level. B) would remain unchanged. C) would rise from its original monopsony level. D) may or may not change from its original monopsony level. 2. Refer to the folowing diagram of a competitive labor market. W, W2 W3 D. Labor Suppose the woge is currently W, and Li is the level of employment. Then we should expect the wage to A) rise and employment to rise, 0) rise and employment to fal. CI fol and employment to rise. D) fal and employment to fal. Wage Wage B.

Refer to the following diagram ofa monopsonistic labor market. MWC W3 W2 W, MRP Q, Q2 Q3 Labor If legislation set the minimum wage at W2, then employment A) would fall from its original monopsony level. B) would remain unchanged. C) would rise from its original monopsony level. D) may or may not change from its original monopsony level. 2. Refer to the folowing diagram of a competitive labor market. W, W2 W3 D. Labor Suppose the woge is currently W, and Li is the level of employment. Then we should expect the wage to A) rise and employment to rise, 0) rise and employment to fal. CI fol and employment to rise. D) fal and employment to fal. Wage Wage B.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the monopsonistic labor market, the MRC L = P L (wage). true or false?