Asked by Ashly De Jesus on Jul 04, 2024
Verified
The labor supply curve facing a purely competitive employer is __________,whereas the labor supply curve facing a monopsonist is ___________.
A) upsloping;horizontal
B) downsloping;vertical
C) vertical;upsloping
D) horizontal;upsloping
Labor Supply Curve
A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.
Monopsonist
A market condition where there is only one buyer for a product or service, giving the buyer significant power over prices and terms.
- Distinguish between the labor supply curves facing a purely competitive employer and a monopsonist.
Verified Answer
GR
Guillermo RamosJul 11, 2024
Final Answer :
D
Explanation :
In a purely competitive labor market, employers face a horizontal labor supply curve because they are wage takers and can hire as many workers as they want at the market wage. A monopsonist faces an upsloping labor supply curve because they are the only buyer of labor and must offer higher wages to attract additional workers.
Learning Objectives
- Distinguish between the labor supply curves facing a purely competitive employer and a monopsonist.
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