For a Monopsonist, Marginal Factor Cost Exceeds the Wage Rate

question 211

Multiple Choice

For a monopsonist, marginal factor cost exceeds the wage rate since

• A) more workers have to be paid the prevailing wage rate.
• B) the supply of labor is perfectly elastic.
• C) when new workers are hired the wage rate must be increased for all workers and not just for the additional workers.
• D) the labor demand is downward sloping.

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