For a monopsonist,the labor supply curve is upward sloping because
A) the monopsonist must compete with other industries for that labor.
B) the monopsonist requires that the laborers are highly skilled.
C) the monopsonist is the only buyer in that labor market.
D) the monopsonist restricts the supply of labor.

Question

Quizplus · Accepted Answer

A monopsonist is the sole buyer in a labor market, so it faces an upward-sloping labor supply curve because it must pay higher wages to attract more workers.

For a Monopsonist,the Labor Supply Curve Is Upward Sloping Because