The Wage Rate That a Monopsonist Would Find Most Profitable

question 18

Multiple Choice

The wage rate that a monopsonist would find most profitable is the wage

• A)At the intersection of the marginal wage curve and the marginal cost curve.
• B)On the labor supply curve corresponding to the level of employment at which the marginal factor cost curve (for labor)intersects the labor demand curve.
• C)On the labor demand curve corresponding to the level of employment at which the marginal factor cost equals market supply.
• D)On the labor demand curve at the wage where the marginal factor cost curve intersects the demand curve for labor.