Suppose a Previously Competitive Labor Market Turns into a Monopsony

Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is:

A) above the labor supply curve under perfect competition.
B) the market supply curve of labor.
C) below the labor supply curve under perfect competition.
D) changed because workers are now more willing to supply labor.
E) perfectly horizontal.

Correct Answer:

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