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The Marginal Factor Cost for a Monopsonist Is

Question 152

Multiple Choice

The marginal factor cost for a monopsonist is:


A) equal to the market wage rate.
B) above the market wage rate.
C) below the market wage rate.
D) affected by the fact that workers are less willing to work than under conditions of perfect competition.
E) lower than the marginal revenue product of labor in equilibrium.

Correct Answer:

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