Use the figure below to answer the following questions.
Figure 18.3.1
-Refer to Figure 18.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.Suppose the government passes a minimum wage law that prohibits anyone from hiring labour at less than $6.50 per hour.The new marginal cost of labour (MCL) for the monopsonist
A) is not affected.
B) equals $6.50 only from zero to 50 hours of labour.
C) equals $6.50 only from zero to 75 hours of labour.
D) equals $6.50 only from zero to 100 hours of labour.
E) none of the above.
Correct Answer:
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