Asked by Jordyn Mercedes on Jul 01, 2024
A monopsony firm in a labor market hires fewer workers than would a competitive firm.
Monopsony Firm
A market situation where there is only one buyer or a dominant buyer for a product or service, giving that buyer substantial control over market prices and terms.
Competitive Firm
A business that operates in a market with many buyers and sellers, where no single entity can significantly influence the market price of goods and services.
- Understand the concept of monopsony in labor markets and its effects on employment and wages.
Learning Objectives
- Understand the concept of monopsony in labor markets and its effects on employment and wages.