2. The supply curve of labor as seen by a monopsonist is

a. downward sloping, because the law of diminishing returns applies to all markets, including labor.

b. downward sloping, because the monopsonist can reduce the wage rate if more laborers are willing to work.

c. horizontal, because the monopsonist can hire as many laborers as it wishes without affecting the wage rate.

d. upward sloping, because in order to hire more laborers, the monopsonist must meet the laborers’ increasing opportunity cost.

e. upward sloping, because the monopsonist will raise the wage rate to deter unions from entering the labor market.