Compared to a monopsony, a perfectly competitive labor market results in a

Name: Compared to a monopsony, a perfectly competitive labor market results in a
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Question

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In a perfectly competitive labor market, firms are wage takers and hire workers until the marginal cost of labor equals the wage rate, resulting in higher wages and more employment compared to a monopsony, where a single buyer (employer) has market power to set lower wages and hire fewer workers.

Compared to a Monopsony, a Perfectly Competitive Labor Market Results