A monopsony will hire ______ workers at a _____ wage than an employer in a competitive labor market.

Question

Quizplus · Accepted Answer

A monopsony is a situation where there is only one buyer, in this case an employer, in the labor market. As the sole buyer, the monopsonist has some market power and can lower wages below the competitive level. This allows the monopsonist to hire fewer workers than would be hired in a competitive market. Therefore, the correct answer is option D - Fewer; lower.

A Monopsony Will Hire ______ Workers at a _____ Wage

A Monopsony Will Hire __ Workers at a _ Wage