A monopsonistic employer faces a

Name: A monopsonistic employer faces a
Brand: Quizplus
Rating: 4.7 (52 reviews)

Question

Quizplus · Accepted Answer

In a monopsony, the employer has significant market power in hiring labor, meaning they are the sole or dominant employer in the market. This results in a Marginal Factor Cost (MFC) curve that is above the wage rate at each quantity of labor because the monopsonist must pay a higher wage to each additional worker, as well as to all the previous workers, to attract more labor.

A Monopsonistic Employer Faces a