Exhibit 11-13 A monopsonist's supply and marginal revenue product data $$\begin{array} { | c | c | c | }
\hline \text { Workers } & \text { Wage Rate } & \text { MRP } \
\hline 1 & \$ 8 & \$ 50 \
2 & 9 & 25 \
3 & 10 & 20 \
4 & 11 & 17 \
5 & 12 & 16 \
6 & 13 & 13 \
\hline
\end{array}$$
-Use Exhibit 11-13. What wage rate will the monopsonist pay the workers?

Question

Exhibit 11-13 A monopsonist's supply and marginal revenue product data $$\begin{array} { | c | c | c | } 
\hline \text { Workers } & \text { Wage Rate } & \text { MRP } \
\hline 1 & \$ 8 & \$ 50 \
2 & 9 & 25 \
3 & 10 & 20 \
4 & 11 & 17 \
5 & 12 & 16 \
6 & 13 & 13 \
\hline
\end{array}$$
-Use Exhibit 11-13. What wage rate will the monopsonist pay the workers?

Quizplus · Accepted Answer

A monopsonist will hire workers up to the point where the marginal revenue product (MRP) equals the marginal cost of labor. In this case, the monopsonist will hire 5 workers where the MRP is $16, and pay the wage rate of $12.

Exhibit 11-13 a Monopsonist's Supply and Marginal Revenue Product Data