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.

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Definitions:

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of another.

Japanese Yen

The official currency of Japan, commonly used in international finance transactions.

South African Rand

The currency of South Africa, abbreviated as ZAR, used as medium of exchange in South Africa.

Exchange

An exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded between two parties.