Where monopsony exists,____ workers will be hired at ____ wages than if perfect competition prevailed in a labor market.

Question

Quizplus · Accepted Answer

In a monopsony situation, there is only one buyer (employer) in the labor market. As a result, they have more bargaining power than individual workers, which allows them to hire fewer workers and pay lower wages than they would in a perfectly competitive market.

Where Monopsony Exists,____ Workers Will Be Hired at ____ Wages

Where Monopsony Exists, Workers Will Be Hired at Wages