If a monopsonist hires labor, it will choose to hire that quantity at which Marginal Revenue Product = Marginal Factor Cost (MRP = MFC) and pay a wage rate that is less than Marginal Revenue Product (MRP). Marginal Factor Cost (MFC) is the increment to total costs paid for a factor of production resulting from a one-unit increase in the amount of the factor employed while Marginal Revenue Product (MRP) is the market value of one additional unit of output.