The Empirical Literature on Monopsony Has Found

question 22

Multiple Choice

The empirical literature on monopsony has found:

• A) Where it exists, monopsony power seems to endure over the long run.
• B) Although one might expect to see monopsony power in markets for nurses and teachers, studies have failed to find this effect.
• C) There is evidence of monopsony power in certain labour markets.
• D) It appears as though many labour markets are affected by monopsony power.
• E) All of the answer choices are correct.

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Definitions:

Monthly Premium

The specific amount of money that individuals or organizations must pay periodically, usually monthly, to maintain coverage under an insurance policy.

Third-Party Payment

A health care payment plan in which the patient pays a premium to an insurance company and the doctor or hospital is paid by this company (e.g., Blue Cross/Blue Shield) for each treatment provided to the patient.

Insurance Company

A business entity that provides coverage, compensating policyholders for losses in exchange for premiums, in various domains such as health, life, and property.

Medical Bill

A statement detailing charges for medical services rendered, issued to the patient or their insurer.