The monopsonistic exploitation of labor refers to

Question

Quizplus · Accepted Answer

Monopsonistic exploitation of labor occurs when employers have market power in the labor market, leading to workers being paid a wage lower than their marginal revenue product. This is different from the union wage differential (B) and reduction in employment from union wage setting (D), which pertain to collective bargaining by labor unions. Choice A is also incorrect because it refers to a reduction in total output from a monopoly in the product market, not the labor market.

The Monopsonistic Exploitation of Labor Refers to