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For a Monopsonist That Faces an Upward- Sloping Labour Supply

Question 43

Multiple Choice

For a monopsonist that faces an upward- sloping labour supply curve,the marginal cost of labour curve will be the supply curve because .


A) below; the increased wage necessary to attract an extra worker is paid to that worker alone
B) below; the extra labour supplied is less capable than previous units of labour supplied
C) above; the increased wage necessary to attract an extra worker must be paid to everyone already employed
D) above; the average wage exceeds the marginal wage when the average wage is rising
E) the same as; the marginal cost of labour equals the average cost of labour

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