Compared to a monopsony, a perfectly competitive labour market results in a
A) lower wage rate and more workers hired.
B) lower wage rate and fewer workers hired.
C) higher wage rate and fewer workers hired.
D) higher wage rate and more workers hired.

Question

Quizplus · Accepted Answer

In a perfectly competitive labour market, the wage rate is higher and more workers are hired compared to a monopsony, where a single buyer (employer) has significant control over the market and can set lower wages and hire fewer workers.

Compared to a Monopsony, a Perfectly Competitive Labour Market Results