Which of the Following Statements Is TRUE When Comparing Monopsony

question 50

Multiple Choice

Which of the following statements is TRUE when comparing monopsony and competitive labor markets?

• A) The monopsony hires more workers but pays a lower wage.
• B) The monopsony hires more workers at a higher wage.
• C) The monopsonist's wage is lower and quantity of labor higher than would prevail under competition.
• D) The monopsonist's wage and quantity of labor are lower than would prevail under perfect competition.

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Definitions:

Monaural

Pertaining to or affecting one ear, used in contexts related to hearing.

Mon(o)-

A prefix meaning one, single, or alone.

Endaural

Related to, occurring within, or performed through the ear canal.

Audiology

The branch of science and medicine dealing with the study of hearing, balance, and related disorders.