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true or false: when a monopsonist pays a higher wage to attract an additional worker it must then pay that new higher wage to all the workers it is currently employing as well.
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true or false: when a monopsonist pays a higher wage to attract an additional worker it must then pay that new higher wage to all the workers it is currently employing as well.

User Benny Davidovitz
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18 votes
18 votes

Answer:

False. When a monopsonist pays a higher wage to attract an additional worker, it does not necessarily have to pay the new higher wage to all the workers it is currently employing. The monopsonist may choose to only pay the higher wage to the new worker and not to the workers it is currently employing.

User David Figatner
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