The Main Difference Between a Monopsonist and a Competitive Buyer

question 245

Multiple Choice

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

• A) the monopsonist can hire as many workers as it wants at the going wage while the competitive firm must raise wages to hire additional workers.
• B) the competitive firm can hire as many workers as it wants at the going wage while the monopsonist can hire more workers at lower wages.
• C) the competitor can hire as many workers as it wants at the going wage while the monopsonist must raise wages to hire additional workers.
• D) the monopsonist can force wages down and still hire as many workers as it wants while the competitive firm must increase the wage rate to hire additional workers.

---

Definitions:

Guanxi

A Chinese term that describes the establishment of networks or connections that facilitate business and other dealings.

Kibbutzim

Collective communities in Israel that operate on principles of shared ownership, responsibility, and living, traditionally based on agriculture.

Economic Difficulties

Challenges related to financial stability and growth in an economy.

Satisfactory Schooling

The provision of education that meets the expected standards and requirements for learning and development.