Assume the Ajax Mining Company hires 80 percent of the nonunion labor force of Mother Lode, New Mexico. Also, suppose that this labor force is highly immobile. Economists would describe this employer as a(n)
A) monopolist.
B) oligopolist.
C) monopsonist.
D) monopolistic competitor.

Question

Quizplus · Accepted Answer

The given scenario represents a monopsonist, which is a single buyer in a particular labor market. Here, Ajax Mining Company has significant control over the labor market as it hires 80% of the nonunion labor force in the area, and the labor force is highly immobile, making it challenging for workers to find other employment options.

Assume the Ajax Mining Company Hires 80 Percent of the Nonunion