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The Wage Paid by a Firm Buying Labor in a Monopsonistic

Question 40

Multiple Choice

The wage paid by a firm buying labor in a monopsonistic market:


A) is greater than the wage in the situation where the monopsony firm was broken up into a large number of firms buying inputs in a perfectly competitive factor market.
B) is less than the wage in the situation where the monopsony firm was broken up into a large number of firms buying inputs in a perfectly competitive factor market.
C) decreases with the quantity of labor hired.
D) does not change with the quantity of labor hired.

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