Susan is a labour market monopsonist.The labour supply curve she faces is given below.
-Refer to the information above.The total labour cost of hiring three workers is

Question

Susan is a labour market monopsonist.The labour supply curve she faces is given below. 
-Refer to the information above.The total labour cost of hiring three workers is

Quizplus · Accepted Answer

To determine the total labour cost of hiring three workers, we need to look at the point where the labour supply curve intersects the marginal revenue product curve. From the graph, we can see that this occurs when three workers are hired, which corresponds to a wage rate of $6. At this wage rate, the marginal revenue product is $8 per worker, so the total labour cost of hiring three workers is 3 x $6 = $18. Therefore, the answer is C.

Susan Is a Labour Market Monopsonist