Final answer:
Higher wage rates do not necessarily imply fewer persons working in a monopsony. False
Step-by-step explanation:
In the case of a monopsony, higher wage rates do not necessarily imply fewer persons working. A monopsony is the sole employer in a labor market and can pay any wage it chooses, but it is still subject to the market supply of labor.
When a monopsony offers too low a wage, it may not find enough workers willing to work for them. However, if the monopsony offers a higher wage, it can attract more workers and increase employment.
To maximize profits, a monopsonist will hire workers up to the point where the marginal cost of labor equals their labor demand. This can result in a lower level of employment than in a competitive labor market, but it does not necessarily mean that higher wage rates imply fewer persons working.