Exhibit 28-10

-Refer to Exhibit 28-10.If the firm in the exhibit is a monopsony,it will hire __________ quantity of labor and pay its workers the wage rate of __________.

Question

Exhibit 28-10
 
-Refer to Exhibit 28-10.If the firm in the exhibit is a monopsony,it will hire __________ quantity of labor and pay its workers the wage rate of __________.

Quizplus · Accepted Answer

In a monopsony, the firm hires where marginal factor cost (MFC) equals marginal revenue product (MRP), which is at Q2, but pays the wage rate from the labor supply curve at Q2, which is W1.

Exhibit 28-10 -Refer to Exhibit 28-10.If the Firm in the Exhibit Is