The Critical Feature of a Monopsonistic Labor Market Is That

question 225

Multiple Choice

The critical feature of a monopsonistic labor market is that the employer

• A) has a perfectly elastic demand curve for labor.
• B) can hire any number of workers it chooses at the going wage rate.
• C) faces an upsloping labor supply curve.
• D) faces a perfectly inelastic labor supply curve.

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Definitions:

Minimum Wage

The lowest legal salary that employers can pay their workers.

Million People

Denotes a population or group size consisting of approximately one million individuals.

Workers

Individuals engaged in any form of economic activity or employment, contributing to the production of goods and services.

Consumer Price Index

A metric that calculates the mean fluctuation in costs over time for a collection of consumer goods and services, as paid by urban buyers.