Which of the following statements is TRUE when comparing monopsony and

Which of the following statements is TRUE when comparing monopsony and competitive labor markets?

A) The monopsony hires more workers but pays a lower wage.
B) The monopsony hires more workers at a higher wage.
C) The monopsonist’s wage is lower and quantity of labor higher than would prevail under competition.
D) The monopsonist’s wage and quantity of labor are lower than would prevail under perfect competition.

ANSWER

D