Asked by Louis Padilla on Jun 03, 2024
Verified
As compared to a purely competitive labor market,in a nonunionized monopsonistic labor market,wages:
A) and employment will both be lower.
B) will be higher,but employment will be lower.
C) will be lower,but employment will be higher.
D) and employment will both be higher.
Monopsonistic Labor Market
A labor market characterized by a single large buyer of labor, which results in lower wages and decreased employment levels compared to competitive markets.
Competitive Labor Market
A market where multiple firms compete to hire workers, and no single employer has the power to influence wages or employment conditions significantly.
- Assess the influence of monopsony on compensation rates and workforce size.
Verified Answer
JB
Jason BrownJun 09, 2024
Final Answer :
A
Explanation :
In a nonunionized monopsonistic labor market, the single buyer (employer) has more power to set wages and employment levels. This typically results in lower wages and employment compared to a purely competitive labor market where multiple employers are competing for workers, driving up both wages and employment levels.
Learning Objectives
- Assess the influence of monopsony on compensation rates and workforce size.