How does a monopsonist decide how many workers to hire and what wage rate to pay?
2. a.Can you explain why some employees who work for monopsonists might feel that they are underpaid?
b.Why can’t the firm raise their wage rates to keep them from feeling this way?
3. a.Explain the difference between a closed shop and a union shop.
b.Which of these would firms prefer? Why?
c.Which of these would unions prefer? Why?
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