Use the following figure to answer the question : Figure 16-2 :shows the marginal cost [MC],average cost [AC],and demand [D] curves for a monopsonist in the labor market.

-Refer to Figure 16-2.When the monopsonist is in equilibrium,the wage rate paid to labor is _____.

Question

Use the following figure to answer the question : Figure 16-2 :shows the marginal cost [MC],average cost [AC],and demand [D] curves for a monopsonist in the labor market.
Use the following figure to answer the question : Figure 16-2 :shows the marginal cost [MC],average cost [AC],and demand [D] curves for a monopsonist in the labor market. -Refer to Figure 16-2.When the monopsonist is in equilibrium,the wage rate paid to labor is _____. A) P1 B) P2 C) P3 D) 0

-Refer to Figure 16-2.When the monopsonist is in equilibrium,the wage rate paid to labor is _____.

Quizplus · Accepted Answer

In a monopsony, the equilibrium wage is determined at the point where the marginal cost of labor (MCL) curve intersects the marginal revenue product of labor (MRPL) curve. This point is vertically projected down to the labor supply curve to find the wage rate. The notation P₁ represents this process, indicating the wage rate paid to labor in equilibrium.

Use the Following Figure to Answer the Question