Compared with a competitive labor market, a monopsony hires _____ workers and pays _____ wages.

Question

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In a monopsony, where there is only one buyer of labor (the employer), the firm has market power and can set wages lower than in a competitive market. Because it sets wages lower, it also hires fewer workers than would be hired in a competitive labor market, where wages would be higher and more workers would be willing to work.

Compared with a Competitive Labor Market, a Monopsony Hires _____