Multiple Choice
A profit- maximizing monopsonist in a labour market will continue to hire labour until the
A) marginal cost of labour equals its average revenue.
B) hourly wage of the labour is equated with its average cost.
C) marginal revenue product of labour equals its marginal cost.
D) hourly wage of the labour is equated with its marginal cost.
E) marginal product of labour is maximized.
Correct Answer:
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