Suppose the wage rate is $5, and the marginal revenue product (mrp) of the seventh worker at a yo-yo factory is also equal to $5. the labor market was originally purely competitive, but is then monopsonized without changing the mrp of the seventh worker. that means more workers will be hired but they will be paid lower wages. more workers will be hired and they will be paid higher wages. fewer workers will be hired and they will be paid lower wages. fewer workers will be hired and they will be paid higher wages.

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?