When a single firm employs all the workers in a market, the outcome will be less optimal for workers than a market in which lots of firms compete with one another to hire workers. In this lesson we'll learn how a "monopsony's" marginal resource cost (marginal factor cost) compares to that of a perfectly competitive employer's and determine the impact this is likely to have on the wage rate and the equilibrium level of employment in the labor market. Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870