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Commerce · Q921

Economics

Graduate and Post Graduate · Commerce · question 921

Q921

When there is monopoly in the product market and monopsony in the labour market, wages will be-

A.
less than the marginal productivity of labour
Answer
B.
more than the marginal productivity of labour
C.
equal to the marginal productivity of labour
D.
equal to the wages set by the trade unions

Answer: Option A

Solution

Answer: Option A
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