Solved

Suppose the Marginal Value Curve for a Monopsonist Is MV

Question 37

Multiple Choice

Suppose the marginal value curve for a monopsonist is MV = 70 - Q, and the marginal expenditure curve is ME = 10 + 2Q. What is the optimal price paid by the monopsonist?


A) P = 20
B) P = 50
C) P = 60
D) We need to know the AE curve in order to determine the optimal price.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q32: Scenario 10.2:<br>A monopolist faces the following demand

Q33: The marginal cost of a monopolist is

Q34: The marginal cost of a monopolist is

Q35: Which of the following statements about natural

Q36: Suppose that a firm can produce its

Q38: The following diagram shows marginal value and

Q39: Unlike a competitive buyer,<br>A) a monopsonist faces

Q40: For a monopsony buyer, the marginal expenditure

Q41: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3095/.jpg" alt=" Figure 10.1.2 -Refer

Q42: Determine the "rule-of-thumb" price when the monopolist