In a labor market with one employer, the marginal factor cost is:

Name: In a labor market with one employer, the marginal factor cost is:
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In a labor market with one employer, known as a monopsony, the marginal factor cost (MFC) is above the labor supply curve. This is because the employer faces the entire labor supply curve and must pay a higher wage to each additional worker, not just the marginal worker, thus increasing the cost of hiring additional labor.

In a Labor Market with One Employer, the Marginal Factor