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The Marginal Expenditure of a Monopsonist Is $4

Question 9

Multiple Choice

The marginal expenditure of a monopsonist is $4.The wage it currently pays is $3.The labor supply curve has a constant elasticity.What is the elasticity of the labor supply?


A) 0.33
B) 0.66
C) 1
D) 3

Correct Answer:

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