Bridge Coal Company is the only employer in a remote and mountainous r

Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market.

If the price of coal increases, then the firm’s quantity of labor demanded ________ and the equilibrium wage ________. A) decreases, decreases
B) decreases, increases
C) increases, decreases
D) increases, increases

ANSWER

D