Problem One: True/'False Briefly explain whether each of the following statements is true or false. IV. VI. VII. The demand for computer programmers is more elastic than the demand for secretaries in Silicon Valley- (Hint: programmers' salaries is a large portion of rm's budget] At a given wage rate, labour demand by a monopolistic firm is larger than a perfectly competitive firm since they have higher prots and can hire more labour. Employers typically finance the on-the-job training by paying a wage less than the value of marginal product of the worker. Firms monopsony power decreases if labour supply gets flatter. Employment level in nondiscriminating monopsony is higherthan a discriminating monopsony, all else equal. Higher earnings may increase the probability of retirement. While hiring costs reduce overall employment, they can simultaneously improve job security