Compared to a firm that sells its output competitively,an otherwise identical monopolist operating in the same labor market will:
A)pay a lower wage
B)pay the same wage
C)pay a higher wage
D)may pay either a higher or lower wage

Question

Quizplus · Accepted Answer

A monopolist operating in the same labor market as a competitive firm will pay the same wage because the wage rate is determined by the labor market, not by the firm's output market structure.

Compared to a Firm That Sells Its Output Competitively,an Otherwise