A Monopsonist's Marginal Factor Cost (MFC) Curve Lies Above Its

question 40

Multiple Choice

A monopsonist's marginal factor cost (MFC) curve lies above its supply curve because the firm must:

• A) lower the factor price to hire more.
• B) increase the price of its product to sell more.
• C) increase the factor price to hire more.
• D) lower the product price to sell more.

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Definitions:

Revocation

The calling back of an offer by the offeror.

Real Property

Land and anything permanently attached to it, such as buildings and structures.

Offeror

In contract law, the person who makes the offer.

Counteroffer

A response to an offer in which the original conditions are rejected and replaced with new terms by the party receiving the initial offer.