A monopsonistic employer in an unorganized (nonunion) labor market will:
A) pay a wage rate less than labor's MRP.
B) pay the same wage rate but hire fewer workers than if the market was purely competitive.
C) hire the number of workers indicated by the intersection of the MRC and the labor supply curves.
D) pay a wage rate in excess of labor's MRP.
As compared to a purely competitive labor market, in a nonunionized monopsonistic labor market wages:
A) and employment will both be lower. C) will be lower, but employment will be higher.
B) will be higher, but employment will be lower. D) and employment will both be higher.