How does a profit maximizing monopsony choose the wage rate and amount of labor to hire?

How does a profit maximizing monopsony choose the wage rate and amount of labor to hire? In a monopsony market, the monopsonist firm—like any profit‐maximizing firm—determines the equilibrium number of workers to hire by equating its marginal revenue product of labor with its marginal cost of labor. The equilibrium market wage rate is determined by … Continue reading How does a profit maximizing monopsony choose the wage rate and amount of labor to hire?