If workers are homogeneous and face a monopsonist,
A) they are likely to want to form a union.
B) they are likely to want to negotiate one-on-one with their employer.
C) it is likely that half will want to form a union, half will not.
D) they are likely to move to another town.

Question

Quizplus · Accepted Answer

In a situation where workers are homogeneous and face a monopsonist, they are likely to want to form a union. This is because they have limited bargaining power as individual workers due to the monopsony power of the employer, and forming a union can increase their bargaining power as a collective group.

If Workers Are Homogeneous and Face a Monopsonist