Use the Following Figure to Answer the Question

Multiple Choice

Use the following figure to answer the question : Figure 16-2 :shows the marginal cost [MC],average cost [AC],and demand [D] curves for a monopsonist in the labor market.

-Refer to Figure 16-2.The firm will move from point B to point C when:

A) the price of capital increases.
B) the total output produced increases.
C) the total output produced falls.
D) the price of labor increases.