The Figure Supports All of the Following Statements Regarding the Marginal

question 211

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.