A firm that has a dominant position in a local labor market may have _______ power in that market.

Question

Quizplus · Accepted Answer

A firm that has a dominant position in a local labor market may have monopsony power in that market. Monopsony power refers to the situation where there is only one buyer (in this case, the firm) in a market with many suppliers (the job seekers). This can give the firm the ability to pay lower wages than it would have to in a more competitive labor market.

A Firm That Has a Dominant Position in a Local