The main difference between a monopsonist and a competitive buyer of labor is that
A) the competitor can hire as many workers as it wants at the going wage while a monopsonist can force wages down when hiring additional workers.
B) the competitor can hire as many workers as it wants at the going wage while a monopsonist must raise wages to hire additional workers.
C) the competitor is a small firm while the monopsonist is a large firm.
D) the competitor is also a competitor in product markets while the monopsonist is also a monopoly in product markets.
Answer: B
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In order for a production possibilities curve to shift to the right, which of the following must occur?
A) government involvement B) increasing consumer wants C) economic growth D) reductions in the supply of resources
Aggregate expenditure will not equal GDP unless
a. next exports are zero. b. transfer payments are zero. c. inventory investment is positive. d. inventory investment is zero. e. inventory investment is negative.