The monopsonist will hire 50 units of labor at a wage rate of w = L = 50. In comparison to a perfectly competitive employer who hires 50 units of labor at a wage rate of 100, the monopsonist hires half the quantity of labor at half the wage rate. Hence, the statement is true.
The monopsonist will hire 50 units of labor at a wage rate of w = L = 50. In comparison to a perfectly competitive employer who hires 50 units of labor at a wage rate of 100, the monopsonist hires half the quantity of labor at half the wage rate. Hence, the statement is true.
Chapter11: Labor Markets
Section: Chapter Questions
Problem 19SQ
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The monopsonist will hire 50 units of labor at a wage rate of w = L = 50. In comparison to a perfectly competitive employer who hires 50 units of labor at a wage rate of 100, the monopsonist hires half the quantity of labor at half the wage rate. Hence, the statement is true.
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