The Main Difference Between a Monopsonist and a Competitive Buyer

question 17

Multiple Choice

The main difference between a monopsonist and a competitive buyer of labor is that

• A) the competitor can hire as many workers as it wants at the going wage while a monopsonist can force wages down when hiring additional workers.
• B) the competitor can hire as many workers as it wants at the going wage while a monopsonist must raise wages to hire additional workers.
• C) the competitor is a small firm while the monopsonist is a large firm.
• D) the competitor is also a competitor in product markets while the monopsonist is also a monopoly in product markets.

---

Definitions:

Institutionalization

The process of placing individuals in an institution, such as a psychiatric hospital or prison, where their freedom is severely restricted.

Lobotomies

Surgical procedures that involve severing connections in the brain's prefrontal cortex, once used to treat mental disorders.

Psychological Disorders

A broad term encompassing various mental health conditions characterized by significant disturbances in an individual's thoughts, feelings, or behaviors.

Antipsychotic Drugs

Medications used to manage psychosis, including hallucinations, delusions, and disorders like schizophrenia.