The Monopsonist's Marginal Input Cost Is Greater Than Its Average

question 56

Multiple Choice

The monopsonist's marginal input cost is greater than its average input cost because:

• A)the firm must increase the price it is willing to pay,to increase employment of an input.
• B)the monopsonist does not have discretion over the price of the input.
• C)the marginal revenue product of labor increases as the number of workers hired increases.
• D)the monopsonist faces a downward-sloping input demand curve.

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Definitions:

Average Daily Cost

The average cost incurred by a business or an operation calculated on a daily basis.

Sales In Inventory

This term seems incorrect or incomplete. The correct term is likely "Inventory," which refers to the goods and materials a business holds for the purpose of resale.

FIFO

First In, First Out (FIFO) is an inventory valuation method where the costs of the oldest items are the first to be expensed, used to calculate cost of goods sold.

Cost Of Goods Sold

The specific costs involved in producing goods for sale by a company, covering materials and labor.