192k views
1 vote
Other things equal, the monopsonistic employer will pay a:

1 Answer

1 vote

Other things equal, the monopsonistic employer will pay a lower wage rate and hire fewer workers than will a purely competitive employer.

The monopsonistic employer will be able to pay a lower wage rate because the employer’s company is the only one who seeks the service of the workers. Therefore, they can dictate how much they’ll pay their workers as they don’t have any competition.

User Ismay
by
5.1k points