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Subject - Economics:

Microeconomics

MCQ - 95-4105

Question:

If a monopsony labor market suddenly were transformed into a perfectly competitive labor market, how would the wage and employment change?

  1. Both would increase.
  2. Both would decrease.
  3. The wage would remain constant, but employment would increase.
  4. Both would decrease.
  5. The wage would rise, but employment would decrease.

Correct Answer: A

Explanation:

Monopsony lowers both wage and employment when compared to the competitive labor market.

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: If a monopsony labor market suddenly were transformed into a perfectly competitive labor market, how would the wage and employment change? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 95-4105.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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