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.

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