The marginal expenditure curve of a monopsonist
A) lies above the market supply curve.
B) lies between the market demand curve and the market supply curve.
C) lies parallel to the market demand curve.
D) lies below the market supply curve.

Question

Quizplus · Accepted Answer

The marginal expenditure curve of a monopsonist lies above the market supply curve because the monopsonist must pay a higher price for each additional unit of input, which raises the cost of all units purchased.

The Marginal Expenditure Curve of a Monopsonist