Compared to perfectly competitive input markets, a monopsony, such as the lumber mill in oregon,
a. creates deadweight loss by paying higher wages.
b. is more economically efficient because it pays lower wages.
c. creates deadweight loss by producing at lower average cost.
d. is more economically efficient because it earns higher profits.
e. creates deadweight loss by hiring fewer workers.

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.