The main difference between a monopsonist and a competitive buyer of labor is that

A. the competitor is a small firm while the monopsonist is a large firm.
B. the competitor is also a competitor in product markets while the monopsonist is also a monopoly in product markets.
C. the competitor can hire as many workers as it wants at the going wage while a monopsonist can force wages down when hiring additional workers.
D. the competitor can hire as many workers as it wants at the going wage while a monopsonist must raise wages to hire additional workers.


Answer: D

Economics

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