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:

Land Rent

Payment made for the use of land, reflecting its productivity, location, and value form a part of real estate economics.

Future Value

The value of an asset or an amount of money at a specific future date, considering interest or capital gains over time.

Annual Interest

Interest calculated over a 12-month period on the principal sum of a loan or deposit.

Loan Amount

The total sum of money borrowed by an individual or entity from a lender, which is expected to be repaid with interest.