The labor market for teachers in a small, isolated community that has one school district would be best described as a(n)
A) natural monopoly.
B) bilateral monopoly.
C) monopsony.
D) oligopsony.

Question

Quizplus · Accepted Answer

In this scenario, there is only one employer (the school district) in the area, which means it has significant power to influence the wages and working conditions of teachers, and there are limited alternative job opportunities. This situation is known as a monopsony, where there is only one buyer in the labor market.

The Labor Market for Teachers in a Small, Isolated Community