Kaitlyn has recently trained as a highly specialized medical physician. There is
ID: 1125688 • Letter: K
Question
Kaitlyn has recently trained as a highly specialized medical physician. There is only one hospital that needs her services. Kaitlyn can expect her wages to be___ compared to what her wages would be in a situation of perfect competition.Fill in the blank Kaitlyn has recently trained as a highly specialized medical physician. There is only one hospital that needs her services. Kaitlyn can expect her wages to be___ compared to what her wages would be in a situation of perfect competition.
Fill in the blank
Fill in the blank
Explanation / Answer
Answer.) RELATIVELY LOWER compared to what her wages would be in a situation of perfect competition.
In a perfectly competitive labor market, the individual firm is a wagetaker; it takes the market wage rate as given, just as the firm in a perfectly competitive product market takes the price for its output as given.But in case of monopoly as proposed in given question, firm's bargaining power is relatively higher than a firm in perfect competition. Monopoly firm can discriminate between workers on different basis for the same work.
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