The critical feature of a monopsonistic labor market is that the employer:
A. has a perfectly elastic demand curve for labor.
B. can hire any number of workers it chooses at the going wage rate.
C. faces an upsloping labor supply curve.
D. faces a perfectly inelastic labor supply curve.
Answer: C
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In the nearly 200 years since Malthus wrote An Essay on the Principle of Population, what has happened to population growth rates as nations have become increasingly industrialized?
a. they have generally increased b. they have averaged zero c. they have generally fallen d. they have done exactly as Malthus forecast, outstripping the production of output
Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision
a. might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. b. will reduce the excess supply of labor. c. is an example of the benefits of a minimum-wage law. d. All of the above are correct.