In a monopsony model of a labor market, as more labor is hired, the marginal factor cost of labor:

Name: In a monopsony model of a labor market, as more labor is hired, the marginal factor cost of labor:
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In a monopsony, a single buyer (employer) faces an upward-sloping supply curve of labor. As more labor is hired, the wage rate must increase to attract additional workers, causing the marginal factor cost, which is the cost of hiring an additional unit of labor, to rise.

In a Monopsony Model of a Labor Market, as More