Answer to Question #314626 in Microeconomics for ledi

Question

Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market. If the price of coal increases, then the firm's

Answer 1

If the price of coal increases,the firm's quantity of labour demanded increases and the equilibrium wage increases hence the firm's Marginal Expenditure curve shifts leftward.