True or False. Provide an explanation - all points are awarded on the basis of the explanation. If a firm sells her output in a competitive market, then the overall production of this firm does not depend on whether the firm is a monopsonist in the labour market or whether the labour market is competitive. This follows because the price for her output is determined in the competitive market for the firms output and the firm equates the marginal cost of production to the market price for her output.

True or False. Provide an explanation - all points are awarded on the basis of the explanation. If a firm sells her output in a competitive market, then the overall production of this firm does not depend on whether the firm is a monopsonist in the labour market or whether the labour market is competitive. This follows because the price for her output is determined in the competitive market for the firms output and the firm equates the marginal cost of production to the market price for her output.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.5P

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Question

T
True or False. Provide an explanation - all points are awarded on the basis
of the explanation.
If a firm sells her output in a competitive market, then the overall production
of this firm does not depend on whether the firm is a monopsonist in the labour
market or whether the labour market is competitive. This follows because the
price for her output is determined in the competitive market for the firms output
and the firm equates the marginal cost of production to the market price for her
output.

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