-(Exhibit: Minimum Wage and Monopsony) If a $30 minimum wage is imposed, the monopsony firm in the exhibit would maximize profits by hiring _______ units of labor per period at the wage _______ .

Question

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A monopsony firm will hire where the marginal expenditure curve (MEC) intersects the marginal revenue product curve (MRP). If a $30 minimum wage is imposed, the firm will hire up to the point where the MEC intersects the MRP at or above $30. Without the graph, the exact number of units can't be determined, but assuming choice C correctly identifies this intersection, the firm would hire that number of units at the imposed minimum wage of $30.

-(Exhibit: Minimum Wage and Monopsony) If a $30 Minimum Wage