The _____ wage resulting from an employer with monopsony power can be offset through _____.
A)low; minimum wage laws
B)low; discrimination
C)high; minimum wage laws
D)high; discrimination

Question

Quizplus · Accepted Answer

Monopsony power refers to a market situation where there is only one buyer (employer) for many sellers (workers), which can lead to lower wages due to the lack of competition for labor. Implementing minimum wage laws can help offset this by setting a legal minimum that employers must pay, potentially raising wages from the lower levels that might otherwise prevail under monopsony conditions.

The _____ Wage Resulting from an Employer with Monopsony Power