Marginal Factor Cost For A Monopsony
A firm operates as a monopsony in a local labor market. The labor supply curve is given by the equation W = 10 + 0.2L, where W is the hourly wage and L is the number of workers. What is the firm’s marginal factor cost (MFC) function?
A
MFC = 0.2L
B
MFC = 10 + 0.2L
C
MFC = 10 + 0.1L
D
MFC = 10 + 0.4L
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