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Eduncle posted an MCQ
October 20, 2019 • 17:45 pm 0 points
  • UGC NET
  • Human Resource Management

The demand curve of labour of the monopsonist is given by

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    Eduncle Best Answer

    The special case of the monopsonist is an important one. A monopsonist is a single buyer of labour, such as De Beers, the diamond producer, and the major employer of diamond workers in South Africa. Monopsonists are common in some small towns, where only one large firm provides the majority of employment.
    Because of their buying power, monopsonists are able to influence the price they pay compared with buyers in more competitive markets. Pure monopsonists are rare because suppliers normally have alternative outlets for their good or service. However, monopsony power is significant in certain sectors of the economy.

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