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In Monopsony, If the Wage Is Determined for the Quantity

Question 100

Multiple Choice

In monopsony, if the wage is determined for the quantity of factor input where MRP = MFC, a minimum wage established above the monopsony wage, but below where the competitive wage would be, will:


A) lead to more unemployment.
B) lead to lower employment.
C) lead to higher employment.
D) lower wages.

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