-Use the above table. If the marginal revenue product is $30, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?

Question

Quizplus · Accepted Answer

Given the marginal revenue product (MRP) is $30, the profit-maximizing monopsonist will hire workers up to the point where MRP equals the marginal factor cost (MFC). Without the table, we assume the correct answer aligns with an MRP of $30, which typically means hiring up to the point where the cost of hiring an additional worker equals $30. The wage paid is then determined by the supply curve at that quantity of labor.

-Use the Above Table