If there are many employers in a market and each has limited market power,the demand for labor is likely to be characterized as
A)Competitive.
B)Monopsonistic.
C)Oligopolistic.
D)Monopolistic.

Question

Quizplus · Accepted Answer

The presence of many employers with limited market power suggests that there is no single dominant buyer in the market for labor. This is characteristic of a competitive labor market, where individual employers have little ability to influence the wage rate and must accept the going rate of pay for the skills and qualifications they require. In a monopsonistic labor market, there is only one employer who has significant market power to set the wage rate, while in an oligopolistic or monopolistic market, a small number of powerful employers may collude to keep the wage rate artificially low.

If There Are Many Employers in a Market and Each