If a Monopsony Finds That Its MRP Is Greater Than

question 55

Multiple Choice

If a monopsony finds that its MRP is greater than its MFC, it:

• A) is doing the right thing to maximize profits.
• B) should hire fewer workers to increase profits.
• C) should hire more workers to increase profits.
• D) should pay the workers a lower wage.
• E) should produce less output.