Question

The main difference between a monopsonist and a competitive buyer of labor is that the competitor can hire as many workers as it wants at the going wage while the monopsonist must raise wages to hire additional workers. 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. 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. 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.

Answer 1

The main difference between a monopsonist and a competitive buyer of labor is that the competitor can hire as many workers as it wants at the going wage while the monopsonist must raise wages to hire additional workers.

Explanation:

There is a horizontal labour curve for a profitable consumer. Thus any number of jobs can be employed at a specified wage rate. The curve of labor supply for monopsonists is sloping upwards. Monopsonist must ,therefore pay higher wages to hire more employees.

Some examples of monopsonism relate to the buy in the labour market of workers ' time, in which a company is the only buyer of a particular kind of labor. The classical example of a natural monopoly is a mining company, where the mining company is the main employer and the primary employer in the city.