Question

Senator approxmire opposes a proposal requiring that the monopsonist pay a minimum wage of at least wmin, stating: "even if the labor market is monopsonistic, economic theory unambiguously demonstrates that imposing a minimum wage causes employment to fall." senator approxmire is:

Answer 1

Senator approxmire is  Incorrect because the monopsonist's effective MRC curve becomes ABCD, which means that it would choose to hire more workers, from L1 to L2, following the imposition of the minimum wage.
When monopsonist exist, the majority of workers within a certain area will be employed by a single entity. When we enacted minimum wage, indeed the company's salary expense will be increased, but this will goes along with the total productivity increased by the happy employees.