Because the monopsonist takes into account the effect that employment expansion has on wages paid to existing workers, it will
A)Pay union workers more than nonunion workers
B)Be exempt from minimum wage laws
C)Employ more and pay more than the corresponding values under competition
D)Employ less and pay less than the corresponding values under competition

Question

Quizplus · Accepted Answer

A monopsonist is a single buyer in a labor market and has market power to set wages. It will employ fewer workers and pay lower wages compared to a competitive market, where wages are determined by supply and demand.

Because the Monopsonist Takes into Account the Effect That Employment