Other things equal, a monopolist will hire

Question

Quizplus · Accepted Answer

A monopolist will hire fewer workers than a perfectly competitive industry because a monopolist operates in a market with less competition and can produce at a lower quantity while charging a higher price. Therefore, a monopolist tends to operate with less output and requires less labor. In contrast, in a perfectly competitive industry, firms produce at the lowest possible cost where the marginal cost equals the price, resulting in more output and more labor demand.

Other Things Equal, a Monopolist Will Hire