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To a Monopsonist in a Labour Market, the Average Cost

Question 68

Multiple Choice

To a monopsonist in a labour market, the average cost curve of labour


A) lies below the supply curve of labour.
B) coincides with the marginal cost curve of labour only below the profit- maximizing wage rate.
C) is the supply curve of labour, which lies below the marginal cost curve for labour.
D) lies above the supply curve of labour.
E) is the marginal cost curve of labour when the supply curve is upward sloping.

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