The Figure Supports All of the Following Statements Regarding the Marginal

question 151

Multiple Choice

The figure supports all of the following statements regarding the marginal factor cost curve for a monopsonist EXCEPT

• A) the monopsonist firm looks at a marginal cost curve, MFC, which slopes upward and is above its labor supply curve.
• B) the marginal benefit of hiring additional workers is given by the firm's MRP curve.
• C) the intersection of MFC with MRP, at point E, determines the number of workers hired.
• D) a monopsonist cannot find the profit-maximizing quantity of labor demanded at E.

---

Definitions:

Power

The capacity or ability of individuals or organizations to direct or influence the behavior of others or the course of events.

Bureaucratic Control

The influence of behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision.

Behaviour

The behavior of a person or collective when responding to outside or inside triggers.

Day-To-Day Supervision

The ongoing, immediate oversight of activities and tasks, typically aimed at ensuring they are accomplished efficiently and correctly.