A monopsonist purchaser of labor that could negotiate a different wage for each worker could
A) purchase less labor than a regular monopsonist.
B) purchase more labor than a regular monopsonist.
C) rotate the marginal expenditure curve to the left.
D) shift the marginal expenditure curve to the left.

Question

Quizplus · Accepted Answer

A monopsonist that can negotiate different wages for each worker can better match the wage to the worker's marginal productivity, potentially hiring more workers at varying wages than a regular monopsonist who offers the same wage to all workers. This flexibility can lead to purchasing more labor as the monopsonist can adjust wages to hire workers who would not have been hired under a single wage rate.

A Monopsonist Purchaser of Labor That Could Negotiate a Different