Part 1 - Check Your Understanding - The following is an excerpt from an October 2018 article entitled 'Monopsony: When there's only one employer in town " (from www.marketplace.org,). Read the passage and answer the questions below. 1. "As giant rms like Amazon hire more people, becoming the dominant employer in some cities, economists have expressed concern that they could be suppressing wages. Despite low unemployment in the United States, wage growth has stagnated in the country. There's a word for a scenario where there are a lot of workers who are facing only one possible employer: monopsony. "It's the labor market equivalent of a monopoly," said Kate Bahn, an economist at the Washington Center for Equitable Growth. "80 when an employer knows that they're not competing for workers, they can pay less than they would if they were in a competitive market." William Boal, a professor of economics at Drake University, said that people use the expression more broadly for any situation where it's difficult for employees to find another employer." Identify three different characteristics of a monopsony. Explain why a monopsony can "suppress wages" but a rm in perfectly competitive labor market cannot. Assume that Amazon says that they can prove that they are not a monopsony in the labor market. What specific information might they need to find to support their claim? The full article includes three examples of potential monopsonies. Find the article online and expEain why one of these examples is a monopsony. In 2017, Amazon began looking for second company headquarters (H02) to supplement their existing headquarters in Seattle, Washington. Would you want Amazon's headquarters in your town? Fully explain your reasoning