The number of units of output that a machine will produce decreases, ceteris paribus. What will this do to the demand for this capital?

Demand will increase.

Demand will decrease.

There will be no change in demand.

Demand will not change, but quantity demanded will decrease.

Demand will not change, but quantity demanded will increase.

Assume that the demand for bicycles increases significantly at the same time that there is an increase in the number of people qualified to make bicycles. What would happen to the market equilibrium quantity of labor and wage rate for the labor to produce bicycles?

The quantity of labor and the wage rate both remain constant.

The quantity of labor increases, and the wage rate increases.

The quantity of labor decreases, and the wage rate increases.

The effect on the quantity of labor is indeterminate, and the wage rate decreases.

The quantity of labor increases, and the effect on the wage rate is indeterminate.

Which of the following is correct about a monopsonistic market?

Resources are efficiently allocated.

There is one seller and many buyers.

The monopsony has a lower quantity transacted as in a perfectly competitive market, ceteris paribus.

The supply curve is horizontal and is equal to the average cost of labor.

Purchase of an additional unit decreases the price of that unit and of the existing units being purchased.

In a monopsonistic market, firms will hire where ________ equals marginal revenue product and pay a ________ down to the supply curve.

demand; wage rate

demand; product price

marginal resource cost; wage rate

marginal resource cost; product price

marginal factor cost; product price