The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia, with only one employer, a logging company.
FIGURE 14- 4
-Refer to Figure 14- 4. The wage paid by this monopsonistic firm will be and employment will be _ .
A) $25 per hour; 750 units of labour
B) between $25 and $35 per hour; between 750 and 1000 units of labour
C) below $25 per hour; below 750 units of labour
D) $30 per hour; 1000 units of labour
E) $35 per hour; 750 units of labour
Correct Answer:
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