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Because the Marginal Cost of Labor Curve Lies Above the Labor

Question 195

Multiple Choice

Because the marginal cost of labor curve lies above the labor supply curve, a monopsony will pay a wage that is


A) equal to the wage paid in a competitive market.
B) equal to value of marginal product.
C) greater than value of marginal product.
D) less than the wage paid in a competitive market.

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