In a monopsony, how does the wage-setting process differ from a competitive labor market?

In a monopsony, there is only one major employer in the job market, which gives that employer significant power over wage-setting. Unlike in a competitive labor market, where many employers compete for workers and drive wages up, a monopsonist can set lower wages because workers have fewer job options. For example, if a single factory is the only employer in a small town, it might pay $10 an hour instead of the $15 that workers could earn if there were multiple factories competing for their labor. This wage-setting process leads to lower overall wages and can result in fewer workers being hired, as the employer does not need to offer higher pay to attract them. Therefore, the lack of competition allows the monopsonist to control wages and employment levels more easily than in a competitive setting.