A monopsonist that wants to hire more labor must pay more for the new labor than it is currently paying and increase the wage rate of all existing employees because
A) the demand curve for labor is inelastic.
B) of labor unions.
C) the supply of labor is upward sloping.
D) of competition in the labor market.
C
You might also like to view...
Since 1960, the labor force participation rate in the United States
A) at first rose sharply and then gradually decreased. B) has generally increased. C) has remained remarkably stable. D) has generally decrease. E) at first gradually decreased and in recent years has risen sharply.
According to public choice theory, policymakers
A) act in ways to bring about an equitable distribution of society's wealth. B) act in ways to maximize economic efficiency. C) place the interests of the public above their own self-interest. D) are likely to pursue their own self-interest, even if their self-interest conflicts with the public interest.