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Which of the Following Statements Is False

Question 26

Multiple Choice

Which of the following statements is false?


A) For the monopsonist, marginal factor cost decreases as it buys additional units of a factor.
B) For the monopsonist, the supply curve of the factor it buys is different from the marginal factor cost curve.
C) The monopsonist buys that quantity of a factor at which marginal revenue product equals marginal factor cost.
D) The monopsonist pays its factors a dollar amount less than its marginal factor cost.

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