If Workers Are Homogeneous and Face a Monopsonist

question 26

Multiple Choice

If workers are homogeneous and face a monopsonist,

• A) they are likely to want to form a union.
• B) they are likely to want to negotiate one-on-one with their employer.
• C) it is likely that half will want to form a union, half will not.
• D) they are likely to move to another town.

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Definitions:

Price Decrease

A reduction in the cost at which a good or service is sold, often aimed at increasing demand or sales volume.

Linear Demand Curve

A graphical representation showing a direct relationship between the quantity of goods consumers are willing to buy and the price of those goods.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Elasticity Supply

An indicator of the extent to which the supply of a product is sensitive to price fluctuations.