The marginal expenditure of a monopsony buyer is as follows:   ME = P + (dP/dQ)Q   P = factor's market price & Q = quantity of the factor sold   a) Demonstrate that the marginal expenditure faced by the monoposonist is equal to: ME = P(1 + 1 / elasticity of supply)   b) Show that the marginal expenditure on the good will always be greater than or equal to the price of the good   c) Utilize the formula you derived to explain why, if the buyer's side were competitive, marginal expenditure would equal the market price   d) Will the factor's market price be higher or lower under a monoposonist buyer than in a perfectly competitive market?

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