the impact on the wage rate and quantity of Labour as a result of lower entry requirements for doctors

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Geography

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23 April, 17:14

the impact on the wage rate and quantity of Labour as a result of lower entry requirements for doctors

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Theodore Mueller · Answer 1

The amount of labour demanded will influence the price the monopsonist must pay for it. In contrast to the situation in a competitive market, the monopsony is a price maker, not a price taker. Monopsony results in lower wages and lower employment of nurses compared to a competitive market.