Economics-Factor-09-ID

In a labor market, the primary outcome of a monopsony is a ____________.

• single employer hiring workers, resulting in lower wages and lower employment levels compared to a competitive market
• when a single employer hiring workers, resulting in higher wages and lower employment levels compared to a competitive market./span>
• market with many sellers and one buyer who faces a perfectly elastic supply curve of labor
• company that dominates a market and uses its bargaining power to dictate lower prices for raw materials