A Monopsonist Hires Labor in a Market with Perfectly Competitive

question 72

Multiple Choice

A monopsonist hires labor in a market with perfectly competitive supply.Whenever she hires an additional worker,

• A)she must reduce the wage paid to all workers already hired.
• B)she will not change the wage paid to all workers already hired.
• C)she must raise the wage paid to all workers already hired.
• D)she may or may not choose to change the wage paid to all workers already hired.

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Definitions:

Military Service

The act of serving in the armed forces of a country, either as a compulsory duty or voluntarily, to defend and protect the nation's interests.

Irish Immigrants

People from Ireland who moved to another country, notably to the United States in the 19th and early 20th centuries, often to escape famine, economic hardship, or political unrest.

Industry Declined

A situation where a specific sector of the economy experiences a significant reduction in activity, production, or growth, often leading to economic downturns and job losses.

Civil War

A war between citizens of the same country, often referred to specifically as the American Civil War which was fought from 1861 to 1865.