Compared to a competitive labor market,in a monopsony labor market:
A)the level of employment is lower but the wage rate is the same.
B)the level of employment and the wage rate are both lower.
C)the level of employment is the same but the wage rate is lower.
D)the level of employment and the wage rate are both higher.

Question

Quizplus · Accepted Answer

In a monopsony labor market, the single buyer (employer) has more power to set wages and employment levels. This typically results in both lower wages and lower levels of employment compared to a competitive labor market, where multiple employers are competing for workers, driving up both wages and employment levels.

Compared to a Competitive Labor Market,in a Monopsony Labor Market