A monopsonistic employer will pay a wage rate

Name: A monopsonistic employer will pay a wage rate
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Question

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A monopsonistic employer has market power in hiring labor, which means it can pay a wage rate less than the marginal revenue product (MRP) of labor. Since the employer is the only buyer of labor, it faces an upward sloping supply curve of labor, allowing it to pay less than the MRP and still attract sufficient workers.

A Monopsonistic Employer Will Pay a Wage Rate