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For a Monopsonist, Marginal Factor Cost Exceeds the Wage Rate

Question 236

Multiple Choice

For a monopsonist, marginal factor cost exceeds the wage rate since


A) more workers have to be paid the prevailing wage rate.
B) the supply of labor is perfectly elastic.
C) when new workers are hired the wage rate must be increased for all workers and not just for the additional workers.
D) the labor demand is downward sloping.

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