Government-mandated wage arbitration for employers can enhance efficiency when the labor market involves:

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Government-mandated wage arbitration can enhance efficiency in a labor market characterized by monopsomy. Monopsony refers to a market structure where there is only one buyer (employer) in a labor market. In such a situation, employers can exercise significant bargaining power over workers, leading to lower wages and reduced employment levels. By mandating wage arbitration, the government can ensure that workers' wages are not suppressed, and they receive a fair wage for their labor. This, in turn, can lead to improved efficiency in the labor market.

Government-Mandated Wage Arbitration for Employers Can Enhance Efficiency When the Labor