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A Monopsonist Hires Labor in a Market with Perfectly Competitive

Question 72

Multiple Choice

A monopsonist hires labor in a market with perfectly competitive supply.Whenever she hires an additional worker,


A) she must reduce the wage paid to all workers already hired.
B) she will not change the wage paid to all workers already hired.
C) she must raise the wage paid to all workers already hired.
D) she may or may not choose to change the wage paid to all workers already hired.

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