In monopsony,
A) each firm employs a small portion of the total supply of labor.
B) the workforce is highly mobile.
C) the wage rate paid by the employer varies directly with the number of workers employed.
D) the employer is a "wage taker."

Question

Quizplus · Accepted Answer

In a monopsony, the employer is the sole or dominant buyer of labor, meaning they have significant control over the wage rate. As they hire more workers, they must raise the wage rate to attract additional workers, leading to a direct relationship between the wage rate and the number of workers employed.

In Monopsony