1. AGEC 105 Testing your EQ EQ #11 - November 7, 2012
1. The graph depicts the situation for a monopsonist. (0.5pt) (a) What is the name of the unlabeled curve in the diagram? MIC (1pt) (b) For the monopsonist, how much of the input should be used assuming profit maximization, and how much should be paid for the corresponding unit? Q=800, P=$2.25 (0.5pt) (c) What is the degree of monopsonistic exploitation? $0.25 P=$2.50 under perfect competition, P=$2.25 under monopsony
PINPUT ?
$3.50 S
$2.50
MRP or MVP
$2.25
800
1,000
QINPUT

2. EQ 11 CONTINUED
2. The agency charged with the responsibility of investigating business organizations and practices is ______Federal Trade Commission (FTC)_____________. 3. The _Capper-Volstead_____ Act of 1922 was the principal legislation exempting cooperatives from anti-trust laws. 4. TRUE or FALSE. Federal marketing orders were created in 1937 by way of the Agricultural Marketing Agreement Act. True 5. The ____Clayton_________ Act of 1914 continues to be instrument in investigating monopoly and other restrictive businesses.