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A monopsonist hires fewer workers than a firm in a competitive labor market because it is the sole buyer of labor, giving it greater market power to set wages. Unlike competitive firms that accept the market wage, a monopsonist must raise wages to attract additional workers, leading to higher marginal costs for hiring. As a result, the monopsonist will hire workers up to the point where the marginal cost of labor equals the marginal revenue product, which typically occurs at a lower quantity of employment compared to competitive firms. This results in a lower overall employment level in the monopsonistic market.
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How can countries within a competitive market benefit from trade agreements?
Countries with fewer restrictions can trade easily
How is a monopoly and a perfectly competitive firm similar?
A perfect competitive market and pure monopoly market both have to follow the "law of demand".
How does a monopoly impact consumer surplus in the market?
A monopoly reduces consumer surplus in the market because it limits competition, allowing the monopolistic company to set higher prices and produce less quantity than in a competitive market. This results in consumers paying more for goods and services and having fewer choices, leading to a decrease in consumer welfare.
Why do corporate farms employ fewer workers?
They rely on machines and computers to do the work.
What might be a hardship for citizens of a centrally planned economy making a trasition to a free market economy?
Workers would lose job security and guaranteed incomes.
How can countries within a competitive market benefit from trade agreements?
Countries with fewer restrictions can trade easily
How is a monopoly and a perfectly competitive firm similar?
A perfect competitive market and pure monopoly market both have to follow the "law of demand".
Older workers have fewer accidents than younger workers do true or false?
It is true that older workers have fewer accidents than younger workers.
How did the mechanical reaper help the north win the war?
It allowed farmers to get their crops to market, and thence to the troops, in a shorter amount of time, with fewer workers.
Discuss the disadvantages of the private sector?
-Less job security -Very competitive atmosphere, high pressure environment-Workers' rights are sometimes infringed upon-Fewer benefits than the public sector.
Which of these was not a goal of union Better working conditions Fewer workers Shorter hours Better pay?
Of these options, fewer workers was not one of the goals of early unions. Unions focused on achieving better working conditions, shorter hours, and better pay for all workers.
How does a monopoly impact consumer surplus in the market?
A monopoly reduces consumer surplus in the market because it limits competition, allowing the monopolistic company to set higher prices and produce less quantity than in a competitive market. This results in consumers paying more for goods and services and having fewer choices, leading to a decrease in consumer welfare.
Why do corporate farms employ fewer workers?
They rely on machines and computers to do the work.
What might be a hardship for citizens of a centrally planned economy making a trasition to a free market economy?
Workers would lose job security and guaranteed incomes.
How many percent of all US firms employ 100 or fewer workers?
25%
Which was an effect of industial revolution?
workers needed fewer skills and less training to do most factory jobs
Why is there little mining in the Northwestern part of Brazil?
Because there are less workers there and fewer resources to mine
