The distinguishing characteristic of labor market monopsonies is the fact that

Question

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In a labor market monopsony, the employer has sufficient power to directly affect the market wage rate. This is because they are the dominant buyer of labor in the market, and any hiring decisions they make will have an impact on the overall wage rate. Option A and C are incorrect since a monopsonist cannot hire any number of workers they want without affecting the market wage. They will have to pay a higher price for additional workers, which means that their hiring decisions will directly affect the market wage rate.

The Distinguishing Characteristic of Labor Market Monopsonies Is the Fact