Question: Consider the graph below. Compared to the competitive market equilibrium, what effect does a monopsonist have on the wage and quantity of labor supplied? a
Consider the graph below.
Compared to the competitive market equilibrium, what effect does a monopsonist have on the wage and quantity of labor supplied?
a
The wage rises, and the quantity supplied falls.
b
The wage falls, and the quantity supplied falls.
c
The wage falls, and the quantity supplied rises.
d
The wage rises, and the quantity supplied rises.
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