The Labour Supply Curve Facing a Monopsonist Is Positively Sloped

question 4

Multiple Choice

The labour supply curve facing a monopsonist is positively sloped because:

• A)the monopsonist must pay a higher wage if it wishes to attract more labour.
• B)these workers are scarce and drive up the wage rate.
• C)government intervenes in the labour market.
• D)the monopsonist only hires skilled labour.

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Definitions:

Employers

Individuals or entities that hire and provide work to employees, offering payment for services or labor performed.

Lockout

An employment and negotiation strategy in which an employer prevents employees from working during a dispute, aiming to pressure the union into concessions.

Strike

A work stoppage initiated by employees as a form of protest, typically in an attempt to gain concessions from their employer regarding pay, conditions, or policies.

Union Membership

The status of being a member of a labor union, an organization that represents the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.