Mod 5.4: Monopsony

In a monopsony market there is/are

• many sellers.

• many buyers.

• one seller.

• one buyer.

• few buyers.

Which of the following is true for a typical monopsony in the labor market?

• The demand curve for labor is horizontal.

• The supply curve for labor is horizontal.

• The marginal factor cost of labor curve is above the labor supply curve.

• The marginal revenue product of labor curve is below the labor demand curve.

• The marginal revenue product of labor curve is above the labor demand curve.

In a monopsony, the equilibrium wage is:

• on the marginal factor cost curve

• on the marginal revenue product curve

• on the demand curve

• on the market supply curve

• unpredictable

The quantity of labor demanded in an imperfectly competitive factor market is determined by the intersection of which two curves?

• marginal revenue and marginal factor cost

• marginal product and supply

• supply and marginal revenue product

• marginal revenue product and marginal factor cost

• marginal product and marginal factor cost

If a minimum wage is imposed on an imperfectly competitive labor market,

• more workers will be employed.

• fewer workers will be employed.

• employment levels will not be affected.

• the unemployment rate will increase.

• the marginal factor cost for every unit of labor will increase.