Use the figure below to answer the following questions. Figure 17.3.1
-Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.If this labour market is controlled by a monopsony,then the monopsonist hires

Question

Use the figure below to answer the following questions.  Figure 17.3.1
-Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.If this labour market is controlled by a monopsony,then the monopsonist hires

Quizplus · Accepted Answer

In a monopsony, the employer has market power and will hire labor where the marginal cost of labor (MCL) curve intersects the value of marginal product of labor (VMPL) curve. This typically results in hiring fewer workers and paying a lower wage than in a competitive market. Without seeing Figure 17.3.1, the correct answer is inferred based on standard economic theory regarding monopsonies. Assuming the given options, if the monopsonist hires 50 hours of labor, it suggests that this is the point where the MCL intersects the VMPL, leading to the hiring decision.

Use the Figure Below to Answer the Following Questions