Arrange the following concepts in the correct sequence of analysis when evaluating a monopsony in labor markets: A) Determine the marginal factor cost, B) Assess the marginal revenue product of labor, C) Identify the optimal employment level, D) Analyze the implications for market efficiency.

When evaluating a monopsony in labor markets, the first step is to assess the marginal revenue product of labor, which tells us how much additional revenue each new worker generates for the employer. Next, you determine the marginal factor cost, which is the cost of hiring one more worker and usually increases as more workers are hired. After understanding these two concepts, you can identify the optimal employment level, where the cost of hiring an additional worker equals the revenue generated by that worker. Finally, you analyze the implications for market efficiency, looking at how the monopsony affects wages, employment levels, and overall economic welfare. For example, if a monopsonist hires fewer workers than a competitive market would, it leads to lower wages and reduced overall efficiency in the labor market.