Order the following steps in understanding the impact of a monopsony on labor markets: A) Monopsonist sets wage lower than competitive market, B) Workers have fewer employment options, C) Employment levels decrease, D) Monopsonist gains market power.

A monopsony is a situation where there is only one buyer in a market, which in this case is the employer in the labor market. First, the monopsonist gains market power, meaning they can influence wages and employment conditions because workers have limited options for jobs. As a result, they set wages lower than what would be found in a competitive market, which leads to fewer job opportunities for workers. With fewer jobs available, employment levels decrease, causing workers to earn less and potentially leaving some without jobs. For example, if a large factory is the only employer in a small town, it can pay lower wages since workers have no other options, impacting their overall income and job security.