Question

minimum wage could potentially increase the number of jobs in a ___________ labor market. A. Perfectly Competitive B. Monopoly C. Monopsony

Answer 1

In both perfect competition and monopoly minimum wage could trigger unemployment as it would be above the market wages and the law of demand and supply of labor is distorted as they are wage takers. However, in a monopsony, is a wage searcher and actually not a wage taker. and with this in order to rope in more employees it has to increase its wages or increase in wages can cause number of jobs to increase in a monopsony market

Therefore (C) Monopsony is the answer.