The monopsonistic power of a firm in a labor market tends to be enhanced by
A) entry of new firms in that market.
B) higher transferability of workers' skills to other professions.
C) an increasing immobility of workers to other jobs or locations.
D) technological advances that make online services easier to provide.

Question

Quizplus · Accepted Answer

An increasing immobility of workers to other jobs or locations can enhance the monopsonistic power of a firm in a labor market because workers have fewer alternatives to seek employment elsewhere, which can allow the firm to have more control over setting wages.

The Monopsonistic Power of a Firm in a Labor Market