Solved

For a Monopsony, the Marginal Cost of Labor Curve Lies

Question 182

Multiple Choice

For a monopsony, the marginal cost of labor curve lies above the labor supply curve because


A) to hire one more unit of labor requires that the wage be raised for all units of labor.
B) to hire one more unit of labor requires that the wage be raised for just the last unit of labor hired.
C) to hire one more unit of labor, the firm uses its monopsony power to not raise the wage it pays.
D) to hire one more unit of labor requires that the firm offer a lower wage.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents