Which of the Following Is True for a Firm That

question 89

Multiple Choice

Which of the following is true for a firm that is an input market monopsony?

• A)In order to increase employment of the input,the firm must lower the wage rate.
• B)The price that the monopsonist pays for the input is determined by the height of the input demand curve.
• C)The marginal cost of the input exceeds the average cost of the input.
• D)The wage paid will equal the marginal cost of the labor input.

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