If a monopsonist's labor supply curve is positively sloped, the marginal factor cost (MFC) will exceed the wage rate.

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In a monopsonistic market, the employer has market power and can influence the wage rate. As the employer hires more workers, it needs to pay higher wages not only to the additional workers but also to the existing workers to keep them from leaving for better-paying jobs. This leads to a positively sloped labor supply curve for the monopsonist. The marginal factor cost (MFC) is the additional cost incurred by the employer when it hires one additional worker. Due to the upward sloping labor supply curve, the MFC will exceed the wage rate in a monopsonistic market.

If a Monopsonist's Labor Supply Curve Is Positively Sloped, the Marginal