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MMLU / If a monopsony labor market suddenly were transformed into a perfectly…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

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

choices

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

subject

high_school_microeconomics

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Source and history

Official source

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