Consider a monopsonistic labour market.One hundred units of labour will be supplied if the wage rate is $12,and 101 units of labour will be supplied if the wage rate is $14.The marginal cost of the 101st worker is

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The marginal cost of the 101st worker is the additional cost incurred by hiring one more worker. The total cost for 100 workers at $12 each is $1200. For 101 workers at $14 each, the total cost is $1414. The marginal cost is $1414 - $1200 = $214.

Consider a Monopsonistic Labour Market