Monopolization of both the labor market and the output market results in
A) higher wages than when both are competitive.
B) a higher output price than when both are competitive.
C) a lower level of output than when both are competitive.
D) All of the above.

Question

Quizplus · Accepted Answer

Monopolization of both the labor market and the output market typically results in higher wages due to the monopsony power in the labor market, higher output prices due to monopoly power in the product market, and a lower level of output compared to a competitive market scenario, as the monopolist restricts output to increase prices.

Monopolization of Both the Labor Market and the Output Market