The average cost curve of labor facing the monopsonist:
A) is the supply curve of labor.
B) lies below its supply curve.
C) lies above its supply curve.
D) is the marginal cost curve of labor.

Question

Quizplus · Accepted Answer

The average cost curve of labor for a monopsonist is the supply curve of labor, as it represents the wage rate that must be paid to attract a given quantity of labor.

The Average Cost Curve of Labor Facing the Monopsonist