Empirical Studies Suggest That, Other Things Equal, the Smaller the Number

Multiple Choice

Empirical studies suggest that, other things equal, the smaller the number of hospitals in a city, the lower are nurses' wages. This is evidence that

A) the labor markets of nurses are purely competitive.
B) hospitals may possess some degree of monopsony power.
C) the minimum wage does not apply to nurses.
D) labor unions have been ineffective in increasing the wages of nurses.