To Maximize Its Profits,a Monopsonist Will Hire Labor the Quantity

question 45

Multiple Choice

To maximize its profits,a monopsonist will hire labor the quantity of labor at which marginal revenue product of labor

• A) is downward sloping and equal to the market wage rate.
• B) is downward sloping and equal to its marginal labor cost.
• C) minus marginal labor cost is maximized.
• D) is maximized.

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Definitions:

Cost Of Goods Manufactured

The total expense incurred to produce goods within a specified period, including materials, labor, and overhead.