A monopsony will continue to hire workers up to the point where the

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In a monopsony, the firm is the only employer of a particular type of labor, meaning it has market power in the labor market. As the firm continues to hire workers, the marginal cost of labor will eventually increase because the supply of labor will become scarcer. However, the marginal revenue product of labor will eventually decrease as more workers are hired, as each additional worker contributes less and less to revenue. Therefore, the firm will continue to hire workers up to the point where the marginal cost of labor equals the marginal revenue product of labor, as this is where the firm can hire an additional worker without decreasing profits.

A Monopsony Will Continue to Hire Workers Up to the Point