Which of the following is FALSE regarding a monopsonist?

Question

Quizplus · Accepted Answer

A monopsonist faces an upward sloping labor supply curve because it must pay higher wages in order to attract more workers. However, it does not face an upward sloping labor demand curve. Instead, it determines the quantity of labor demanded at the point where its marginal cost of labor equals the wage rate. Additionally, a monopsonist does not necessarily have to be the only buyer in a market, as it may simply have enough market power to be able to set the wage rate. Finally, while the monopsonist may not face the entire market labor supply curve, it does have some influence over it through its actions.

Which of the Following Is FALSE Regarding a Monopsonist