A monopsonistic labor market has a

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In a monopsonistic labor market, there is only one buyer of labor, which gives that employer substantial market power over wages and employment levels. 
Option 1: 'labor force of identically skilled workers' describes a situation of perfectly competitive labor supply where many workers are available at the going wage; it does not capture the essence of a monopsony. 
Option 2: 'horizontal labor supply curve' implies that the wage is constant regardless of employment level, which is characteristic of a perfectly competitive market, not a monopsony with a single employer. 
Option 3: 'single employer of labor' is the defining feature of a monopsony: one employer hires all the available labor, exercising wage-setting power. 
Option 4: 'demand curve for labor that is perfectly elastic' would mean employment does not affect the wage, which again contradicts the typical downward-sloping marginal product of labor and the wage-setting power in a monopsony. 
Option 5: 'backward bending labor supply curve' describes a labor supply curve that slopes backward at high wages, which is not a necessary or defining feature of monopsony; it reflects workers’ labor-leisure choices rather than the employer’s single-purchaser dynamic. 
Therefore, among the choices, the statement that best defines a monopsonistic labor market is that it has a single employer of labor.

AP Economics-Hillebrand AP Microeconomics Sem 1 Exam 2025 - Requires Respondus LockDown Browser

A monopsonistic labor market has a

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