Question

A monopsonistic employer in an unorganized (nonunion) labor market will: Group of answer choices pay a wage rate in excess of labor's MRP. pay a wage rate less than labor's MRP. pay the same wage rate but hire fewer workers than if the market was purely competitive. hire the number of workers indicated by the intersection of the MRC and the labor supply curves.

Answer 1

Answer:

pay a wage rate less than labor's MRP

Explanation:

A monopsonistic employer in an unorganized (nonunion) labor market will: "pay a wage rate less than labor's MRP"

The above statement is based on the idea that Monopsony is a market situation whereby a single buyer or firm is the only purchaser of a good or service, which in most cases has to do with the purchase of labor.

And given the fact that the firm is the sole purchaser of labor, where there is no labor union, there is a high tendency that such firm or employer pays a wage rate less than labor's marginal revenue productivity.