in a monopsonistic labor market the employer will maximizeprofits by employing w

Question

in a monopsonistic labor market the employer will maximizeprofits by employing workers up to that point at which a. the difference between the wage rate and marginal resource(labor) cost at is at a maximum b. marginal revenue products equals marginal resource (labor)cost c. the wage rate equals marginal revenue product d. the wage rate equals marginal resource (labor) cost. in a monopsonistic labor market the employer will maximizeprofits by employing workers up to that point at which a. the difference between the wage rate and marginal resource(labor) cost at is at a maximum b. marginal revenue products equals marginal resource (labor)cost c. the wage rate equals marginal revenue product d. the wage rate equals marginal resource (labor) cost.

Explanation / Answer

      MRP will be thefirm’s resource (labor) demand schedule in a competitiveresource market because the firm will hire (demand) the number ofresource units where their MRC is equal to their MRP. Thus, Answer is Option b. marginal revenue productsequals marginal resource (labor) cost                                         MRP = MRC                                         MRP = MRC

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