Which statement is true for a monopolist in both product and factor markets?
1
The monopolist’s marginal cost curve is also its factor demand curve.
2
The monopolist pays a wage that is higher than the marginal revenue product of labor.
3
Monopsony in factor markets leads to lower employment levels compared to a perfectly competitive market.
4
Monopsonist firms face perfectly elastic supply curves for labor.
5
Question Not Attempted