Multiple Choice

-In Exhibit P-6, at a wage of $12, the
A) monopsonist is paying the workers too little
B) monopsonist should hire fewer workers because the wage rate is less than the MLC
C) monopsonist is hiring the profit-maximizing number of workers
D) workers are getting a wage that is higher than their marginal contribution to the firm's revenues
E) return to monopsony power is zero
Correct Answer:
Verified
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