A monopsonistic employer may sell its product in a competitive market.

Monopsonistic Employer

A single buyer, typically an employer, that controls the market for its labor and thus can influence wages and employment terms.

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity can influence price, promoting efficiency and innovation.

Comprehend the mechanisms behind wage setting across various market scenarios, such as in monopsonistic and unionized settings.

Verified Answer

Final Answer :

True

Explanation :

A monopsonistic employer is the only buyer of labor in a market, but it may still face competition when selling its product in a separate market.

Learning Objectives

Comprehend the mechanisms behind wage setting across various market scenarios, such as in monopsonistic and unionized settings.