In a monopsony, how is the wage determined relative to the supply curve?

• A. The wage is determined where the supply curve touches the point where marginal cost equals marginal revenue product.
• B. The wage is determined where the demand curve intersects the supply curve.
• C. The wage is determined where the marginal cost curve intersects the demand curve.
• D. The wage is determined where the marginal revenue product equals the wage.

Answer: (A)