Exhibit 11-14 Labor cost data for a monopsonist $$\begin{array} { | c | c | }
\hline \text { Wage Rate } & \begin{array} { c }
\text { Number of } \
\text { Workers }
\end{array} \
\hline \$ 0 & 0 \
5 & 10 \
8 & 20 \
12 & 30 \
16 & 40 \
\hline
\end{array}$$
-In Exhibit 11-14, the marginal factor cost when the monopsonist goes from 30 to 40 workers hired is:

Question

Exhibit 11-14 Labor cost data for a monopsonist $$\begin{array} { | c | c | } 
\hline \text { Wage Rate } & \begin{array} { c } 
\text { Number of } \
\text { Workers }
\end{array} \
\hline \$ 0 & 0 \
5 & 10 \
8 & 20 \
12 & 30 \
16 & 40 \
\hline
\end{array}$$
-In Exhibit 11-14, the marginal factor cost when the monopsonist goes from 30 to 40 workers hired is:

Quizplus · Accepted Answer

The marginal factor cost (MFC) is the additional cost of hiring one more worker. When the monopsonist increases workers from 30 to 40, the total wage cost increases from $360 (30 workers * $12) to $640 (40 workers * $16). The MFC is $640 - $360 = $280, divided by 10 additional workers, which equals $28 per worker.

Exhibit 11-14 Labor Cost Data for a Monopsonist -In Exhibit 11-14, the Marginal Factor Cost When the Monopsonist