If a Monopsonist Pays the Wage Rate W, Then the Amount

question 7

Multiple Choice

If a monopsonist pays the wage rate w, then the amount of labor that he can hire is L(w) = Aw, where A is a positive constant.The marginal cost of labor to the monopsonist is

• A)equal to the wage rate.
• B)twice the wage rate.
• C)half the wage rate.
• D)greater than the wage rate but less than twice as great.
• E)less than the wage rate but more than half as great.

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