Multiple Choice
Which of the following is true for a firm that is an input market monopsony?
A) In order to increase employment of the input,the firm must lower the wage rate.
B) The price that the monopsonist pays for the input is determined by the height of the input demand curve.
C) The marginal cost of the input exceeds the average cost of the input.
D) The wage paid will equal the marginal cost of the labor input.
Correct Answer:
Verified
Correct Answer:
Verified
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