The monopsonist in this figure is a competitor in the product market and has a demand for labor equal to its VMP_L, while facing supply of labor, S_L. The firm will hire at the level where MFC = VMP_L (point a), hiring L₀ workers at wage W₀ (point b). Note that these L₀ workers, although paid W₀, are worth W₁. This is called the monopsonistic exploitation of labor. Note also that the wages paid in this monopsony situation (W₀) are less than those paid under competitive conditions (W_C), and that monopsony employment (L₀) is lower than competitive employment (L_C).