On a clearly labeled graph, show what happens to wages paid and employment if the government imposes a payroll tax on a monopsonist?  Should the change in wages paid and employment be larger for a monopsonistic labor market or a perfectly competitive one?  Explain your answer.

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Chapter29: Resource Markets
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On a clearly labeled graph, show what happens to wages paid and employment if the government imposes a payroll tax on a monopsonist?  Should the change in wages paid and employment be larger for a monopsonistic labor market or a perfectly competitive one?  Explain your answer.

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