The labor supply curve for a monopsony is

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A monopsony is a market structure in which there is only one buyer of a particular good or service, in this case, labor. The firm in a monopsony has market power to set the wage rate, but faces an upward sloping labor supply curve, meaning that as it hires more workers, it must offer higher wages to attract additional workers. However, the degree to which the curve is upward sloping depends on the elasticity of labor supply in the market. If labor supply is perfectly elastic, the curve will be horizontal, and if it is perfectly inelastic, the curve will be vertical. In most cases, labor supply is upward sloping but not perfectly vertical, hence choice C is the correct answer.

The Labor Supply Curve for a Monopsony Is