W MRP; W MRC Refer to the list. The outcome in a monopsony labor market is shown by
A) 1.
B) 2.
C) 3.
D) 4.

Name: W > MRP; W > MRC Refer to the list. The outcome in a monopsony labor market is shown by A) 1. B) 2. C) 3. D) 4.
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Question

W > MRP; W > MRC Refer to the list. The outcome in a monopsony labor market is shown by
A) 1.
B) 2.
C) 3.
D) 4.

Quizplus · Accepted Answer

In a monopsony labor market, the firm is the only buyer of labor, so it has market power and can set the wage below the marginal revenue product of labor (MRP). The wage is also below the marginal resource cost of labor (MRC).

W > MRP; W > MRC Refer to the List