In a monopsony labor market, an increase in the marginal revenue product of labor will always lead to an increase in the wage offered to workers, as the monopsonist seeks to hire more labor to maximize profits.

In a monopsony labor market, there is only one employer for many workers, which gives that employer significant control over wages. When the marginal revenue product of labor increases, it means that each additional worker can generate more revenue for the employer. To maximize profits, the monopsonist would want to hire more workers, and to attract these workers, the employer is likely to raise wages. For example, if a factory finds that each new worker can produce more goods that sell for a higher price, it makes sense for the factory owner to increase wages to bring in more workers. Therefore, an increase in the marginal revenue product of labor typically leads to higher wages in a monopsony.