Other things equal, the monopsonistic employer will pay a
a. lower wage rate and hire fewer workers than will a purely competitive employer.
b. higher wage rate but hire fewer workers than will a purely competitive employer.
c. lower wage rate but hire a larger number of workers than will a purely competitive employer.
d. higher wage rate and hire a larger number of workers than will a purely competitive employer.

Respuesta :

Answer: The correct answer is "a. lower wage rate and hire fewer workers than will a purely competitive employer.".

Explanation: Monopsony is generated when there are many people looking for work and there are only a few employers, who can afford to offer a lower salary than they would have to offer if there was more competition for workers.