Suppose a Monopsonist Currently Employs 100 Workers at a Wage

Suppose a monopsonist currently employs 100 workers at a wage of $400 per week. If the firm wants to expand employment to 110 workers, and the 110th worker will only work for $450 per week, what is the approximate marginal factor cost of the 110th worker?

A) $450 per week.
B) $5,500 per week.
C) $950 per week.
D) $9,500 per week.
E) $49,500 per week.

Correct Answer:

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