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The Supply Curve That Monopsonists Face Is Different from the Supply

Question 101

Multiple Choice

The supply curve that monopsonists face is different from the supply curves that firms in competitive labor markets face because with a monopsony,


A) many more workers are hired to produce the larger amount of output
B) the supply curve of labor is relatively flat
C) offering a wage lower than the market wage means having no workers
D) the employer faces the market supply curve of labor
E) the firm takes the market wage rate as given

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