For a monopsony, when the firm purchases additional units of a factor, the marginal factor cost (MFC) rises.

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In a monopsony, where there is only one buyer in the market, the firm faces an upward-sloping supply curve for the factor of production. Therefore, to purchase additional units of the factor, the firm must pay a higher price, not only for the additional units but also for all previous units, leading to a rising marginal factor cost (MFC).

For a Monopsony, When the Firm Purchases Additional Units of a Factor