Studies have shown that nurses get paid higher wages when they live in a city which has many potential employers. This is compared to the lower wages they get when there are only one or two hospitals in the city. Why is this true?

Group of answer choices

City life is cruel and uncaring.

The better nurses tend to move to cities where there are many hospitals.

When there are only one or two hospitals, they probably possess monopsony hiring power.

It's a matter of supply and demand. The hospitals supply employment, and the nurses demand employment.