For a Monopsonist, the Marginal Factor Cost Curve Will Be

Multiple Choice

For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because

A) the monopsonist will take advantage of labor and offer them lower wages.
B) in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered.
C) in order for the monopsonist to hire more labor the monopsonist must also purchase more capital.
D) the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers.