A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost is

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The marginal factor cost (MFC) is the additional cost of hiring one more worker. To hire the 51st worker, the monopsonist must pay all 51 workers $10.10, which increases the total wage bill by $15.10 (51 workers x $10.10 - 50 workers x $10.00).

A Monopsonist Is Currently Employing 50 Workers at $10 an Hour