When a monopsony hires an additional worker,it must pay the new worker's wages and it bids up the wages of all workers.This fact implies that the monopsony's

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In a monopsony, the single buyer (employer) in the market must increase the wage to attract additional workers, which also increases the wages for existing workers. This means the cost of hiring an additional worker (marginal labor cost) is more than just the wage paid to that new worker, making it greater than the wage rate.

When a Monopsony Hires an Additional Worker,it Must Pay the New