A monopolist hiring labor in a perfectly competitive resource market is faced with a:
A)perfectly elastic demand curve for labor.
B)horizontal marginal factor cost curve.
C)perfectly inelastic demand curve for labor.
D)perfectly inelastic supply curve of labor.
E)positively sloped marginal factor cost curve.

Question

Quizplus · Accepted Answer

A monopolist hiring labor in a perfectly competitive resource market is faced with a horizontal marginal factor cost curve because the monopolist can hire as much labor as it wants at the going market wage.

A Monopolist Hiring Labor in a Perfectly Competitive Resource Market