Question: BigBiz, a local monopsonist, currently hires 50 workers and pays them $6 per hour. To attract an additional worker to its labor force, BigBiz would

BigBiz, a local monopsonist, currently hires 50 workers and pays them $6 per hour. To attract an additional worker to its labor force, BigBiz would have to raise the wage rate to $6.25 per hour.

What is BigBiz’s marginal factor cost?

a. $6.25 per hour.

b. $12.50 per hour.

c. $18.75 per hour.

d. $20.00 per hour.

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