Answers
1) For a monopsonist, marginal revenue product is the labor demand and marginal factor cost is the labor supply which is derived from the labor supply of the market. Now if market labor supply curve shifts right, marginal factor cost function will also shift right / down. Option D
2) For a monopsonist, marginal revenue product is the labor demand and marginal factor cost is the labor supply which is derived from the labor supply of the market. Hence, when labor demand increases, MRP curve shifts up/right. Option A
3) Demand for product determines the determines the demand for labor.
When demand for product increases, it shifts right and so price rises. When price rises, demand for labor / MRP curve shifts right which for a given labor marginal factor cost curve, raises the level of wages. Option G.
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