The monopsonist faces the entire _____ curve of labor.
A)supply
B)demand
C)demand curve and supply

Question

Quizplus · Accepted Answer

The monopsonist is the sole buyer of labor in the market, which means that it has complete control over the wage rate. As a result, the monopsonist faces the entire supply curve of labor, which shows the relationship between the wage rate and the quantity of labor supplied by workers. The monopsonist can choose to hire more workers at a lower wage rate or fewer workers at a higher wage rate, depending on the elasticity of the labor supply curve. Therefore, the correct answer is A) supply.

The Monopsonist Faces the Entire _____ Curve of Labor