As compared to a purely competitive labor market, in a nonunionized monopsonistic labor market, wages
A) and employment will both be lower.
B) will be higher, but employment will be lower.
C) will be lower, but employment will be higher.
D) and employment will both be higher.

Question

Quizplus · Accepted Answer

In a monopsonistic labor market, a single employer has significant control over the wage rate and employment levels. This typically results in lower wages and employment compared to a purely competitive labor market, where many employers compete for workers, driving wages and employment higher.

As Compared to a Purely Competitive Labor Market, in a Nonunionized