For a profit-maximizing monopsonist,the correct relationship between the value of marginal product (VMP),marginal labour cost (MLC),and the wage rate (W)is

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For a profit-maximizing monopsonist, the marginal cost of labor (MLC) is equal to the wage rate, as the firm is the sole buyer of labor in the market, and it can only hire more workers by paying a higher wage rate. The value of marginal product (VMP) refers to the additional revenue generated by hiring an additional worker. In order to maximize profits, the firm will hire workers up to the point where the VMP of labor is equal to the wage rate (MLC). If the VMP is greater than MLC (VMP > MLC), it means that the firm can earn additional profits by hiring an extra worker, and thus the firm will continue to hire more workers until VMP = MLC. Therefore, the correct relationship between VMP, MLC, and the wage rate is VMP = MLC > W.

For a Profit-Maximizing Monopsonist,the Correct Relationship Between the Value of Marginal