The Marginal Factor Cost of Labor for a Monopsonist Is

Multiple Choice

The marginal factor cost of labor for a monopsonist is

A) equal to the wage rate because if the monopsonist wants to hire another worker, it can do so at the old wage rate.
B) less than the wage rate because if the monopsonist wants to hire another worker, it has to raise the wage rate paid to all workers.
C) less than the wage rate because if the monopsonist wants to hire another worker, it has to lower the wage rate paid to all workers.
D) greater than the wage rate because if the monopsonist wants to hire another worker, it has to raise the wage rate paid to all workers.