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A Monopsonistic Employer's Marginal Resource (Labor) Cost Curve

Question 41

Multiple Choice

A monopsonistic employer's marginal resource (labor) cost curve


A) is always more elastic than the labor supply curve.
B) coincides with the labor supply curve.
C) lies below the labor supply curve because the higher wage paid to an additional worker must also be paid to all other employed workers.
D) lies above the labor supply curve because the higher wage paid to an additional worker must also be paid to all other employed workers.

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