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If the Employer Is a Monopolist in the Output Market

Question 3

Multiple Choice

If the employer is a monopolist in the output market:


A) There is monopsony in the input market.
B) The demand for labour is less elastic than it would be if the firm operated in a competitive input market.
C) The firm's demand curve for labour is identical to the case where the firm is a competitor in the output market.
D) The demand for labour is less elastic than it would be if the firm operated in a competitive output market.
E) None of the above choices are correct.

Correct Answer:

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