In a monopsony market, if the government implements a minimum wage policy aimed at increasing workers' income, what is the likely outcome for the number of workers hired by the monopsonist?

In a monopsony market, there is only one employer for many workers, which gives the employer significant power over wages and hiring. If the government sets a minimum wage that is above the current wage the monopsonist pays, the employer may not hire as many workers because their costs will increase. For example, if a company currently pays $10 an hour and the minimum wage is set at $12, the company might decide to hire fewer workers to manage its higher payroll expenses. This can lead to fewer job opportunities, even though the workers who are hired earn more money. Therefore, while the minimum wage increases income for some workers, it can also reduce the total number of workers employed in that market.