1 / 23

Labor Monopoly and Monopsony

Labor Monopoly and Monopsony. The Monopoly. Suppose we have a a monopoly industry. The Monopoly. Suppose we have a a monopoly industry. The firm still has a MPP curve. The Monopoly. Suppose we have a a monopoly industry. The firm still has a MPP curve However we are not interested in

kelii
Télécharger la présentation

Labor Monopoly and Monopsony

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Labor Monopoly and Monopsony Lectures in Microeconomics-Charles W. Upton

  2. The Monopoly • Suppose we have a a monopoly industry. Labor Monopoly and Monopsony

  3. The Monopoly • Suppose we have a a monopoly industry. • The firm still has a MPP curve Labor Monopoly and Monopsony

  4. The Monopoly • Suppose we have a a monopoly industry. • The firm still has a MPP curve • However we are not interested in VMP = MPP * P • But MRP = MPP *MR Labor Monopoly and Monopsony

  5. The Monopoly • The monopolist’s demand function is determined by MRP, not VMP. wo MRP= MPP x MR Lo Labor Monopoly and Monopsony

  6. The Monopoly • The monopolist’s demand function is determined by MRP, not VMP. • Since MR < P, MRP < VMP. wo MRP= MPP x MR Lo Labor Monopoly and Monopsony

  7. The Monopsonist • A monopoly is a sole seller; a monopsonist is a sole buyer. Labor Monopoly and Monopsony

  8. The Monopsonist • A monopoly is a sole seller; a monopsonist is a sole buyer. • As a monopolist worries about MR, a monopsonist worries about MCF Labor Monopoly and Monopsony

  9. The Monopsonist w S wo N No Labor Monopoly and Monopsony

  10. The Monopsonist w S w* wo N No N* Labor Monopoly and Monopsony

  11. The Monopsonist S w* wo Labor Monopoly and Monopsony No N*

  12. The Monopsonist MCF S VMP w VMP Labor Monopoly and Monopsony N

  13. The Monopsonist/Monopolist MCF S VMP MRP w VMP MRP N* N Labor Monopoly and Monopsony

  14. The Monopsonist/Monopolist MCF Equilibrium if both markets are competitive S VMP MRP w VMP MRP N* N Labor Monopoly and Monopsony

  15. The Monopsonist/Monopolist MCF Equilibrium if both markets are competitive S VMP MRP Monopolist with competitive labor market w VMP MRP N* N Labor Monopoly and Monopsony

  16. The Monopsonist/Monopolist MCF Equilibrium if both markets are competitive S VMP Competitive market with monopsony labor market MRP Monopolist with competitive labor market w VMP MRP N* N Labor Monopoly and Monopsony

  17. The Monopsonist/Monopolist MCF Equilibrium if both markets are competitive S VMP Competitive market with monopsony labor market MRP Monopolist with competitive labor market w Monopoly market with monopsony labor market VMP MRP N* N Labor Monopoly and Monopsony

  18. The Monopsonist/Monopolist MCF S VMP MRP w VMP MRP N* N Labor Monopoly and Monopsony

  19. Two Issues • Is this exploitation? Labor Monopoly and Monopsony

  20. Two Issues • Is this exploitation? • In the sense that the workers are not being paid the VMP, it is. Labor Monopoly and Monopsony

  21. Two Issues • Is this exploitation? • Price Discrimination Labor Monopoly and Monopsony

  22. Two Issues • Is this exploitation? • In the sense that the workers are not being paid the VMP, it is. • Price Discrimination • Confidential salaries • Moving expenses and hiring bonuses Labor Monopoly and Monopsony

  23. End ©2006 Charles W. Upton Labor Monopoly and Monopsony

More Related