If one company provides 70% of the jobs in a town, the company could exert _____ power in its labor market.
A)differential
B)compensating
C)monopoly
D)monopsony

Question

Quizplus · Accepted Answer

If one company provides 70% of the jobs in a town, it could exert monopsony power in its labor market. Monopsony occurs when there is only one buyer (in this case, the company) in a labor market, which gives the company the ability to depress wages and working conditions.

If One Company Provides 70% of the Jobs in a Town