In a monopsonistic labor market, what is the likely effect on wage levels if a new firm enters the market offering similar job positions?

In a monopsonistic labor market, there is only one major employer who has significant control over wage levels. If a new firm enters the market and offers similar job positions, it creates competition for workers. This competition is likely to lead to higher wage levels because the original employer may need to increase wages to attract and retain employees who now have more options. For example, if a factory is the only employer in town and pays $15 per hour, but a new factory opens and offers $16 per hour for the same work, the original factory may raise its wage to stay competitive. Thus, the entry of a new firm can help improve wages for workers in a monopsonistic market.