When contemplating the purchase of a resource, the pure monopsonist sh

When contemplating the purchase of a resource, the pure monopsonist should do which of the following to maximize profit?

A) Purchase enough to make the marginal expenditure equal to the marginal revenue product.
B) Purchase enough to make the average expenditure equal to the marginal revenue product.
C) Pay a wage equal to the value of MRP at the intersection of MRP and ME curves.
D) Pay a wage equal to the value of MRP at the intersection of AE and MRP curves.

ANSWER

A