If the marginal factor cost is less than labor demand,a monopsonist should

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Marginal factor cost is the additional cost of hiring one more worker. If the marginal factor cost is less than labor demand, it means that the marginal benefit of hiring another worker is greater than the cost. Therefore, it is in the monopsonist's best interest to hire additional workers to increase their profits. Reducing the wage rate or increasing it would not necessarily lead to an increase in profits in this scenario.

If the Marginal Factor Cost Is Less Than Labor Demand,a