A monopoly must face the market supply of labor schedule because it is the only employer in the market.

Question

Quizplus · Accepted Answer

A monopoly is a sole seller of its product or service, but it does not imply that it is the only employer in the market. As such, it does not necessarily face the market supply of labor schedule. In a competitive labor market, a monopoly has to compete with other employers to attract and retain workers, which means that it faces an upward-sloping supply curve of labor, which reflects the opportunity cost of workers' time and effort.

A Monopoly Must Face the Market Supply of Labor Schedule