The bargaining power of a firm depends on the degree of its _____ in hiring workers.
A) ability to strike
B) monopsony power
C) cash flow
D) marginal revenue

Question

Quizplus · Accepted Answer

The bargaining power of a firm, especially in terms of hiring workers, largely depends on its monopsony power. Monopsony power refers to the market power a single buyer (in this case, the employer) has over sellers (workers), allowing the buyer to influence the price or terms of purchase, including wages and hiring conditions.

The Bargaining Power of a Firm Depends on the Degree