Which of the Following Is False

question 57

Multiple Choice

Which of the following is false?

• A) The evidence seems to show that there are only a few, if any, instances of pure monopsony in the real world.
• B) In a monopsony setting, it is possible for a minimum wage to actually increase the number of workers hired.
• C) Although in a monopsony setting it is possible for a minimum wage to actually increase the number of workers hired, it is not possible to raise wage rates continually and always increase employment, too.
• D) The marginal factor cost for a monopsonist is less than the wage rate it pays workers.