asked 8.1k views
0 votes
Two employers pay a wage of $10 an hour. Employer A is a monopsony while Employer B hires in a competitive labor market. Both firms sell their output in competitive markets. Which of the following will be true? The marginal worker in both firms will add the same to the firm's revenue. It will cost employer A more to hire another worker. Employer A has a higher average wage cost per worker than Employer B. If a worker left employer A and joined employer B, the economy would be better off.

1 Answer

2 votes

Answer:

It will cost employer A more to hire another worker

answered
User Karlo
by
8.8k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.