Suppose that the labor market for clerical workers in a major city includes 1 employer and 100,000 workers.The model that best fits this situation is:

Question

Quizplus · Accepted Answer

A monopsony is a market structure in which there is only one buyer of labor, which gives the buyer market power to set wages below the marginal revenue product of labor. In this situation, the employer in the city is the only buyer of labor for clerical workers, which means the market is a monopsony.

Suppose That the Labor Market for Clerical Workers in a Major