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Suppose a Monopsonist Wants to Hire More Workers

Question 102

Multiple Choice

Suppose a monopsonist wants to hire more workers. If it has to pay the same wage rate to all of its workers


A) the marginal labor cost will fall while the wage rate will rise
B) the wage rate will fall while the marginal labor cost will rise
C) the difference between the wage rate and the marginal labor cost will decrease
D) the difference between the wage rate and the supply curve of labor will increase
E) both the wage rate and the marginal labor cost will increase

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