Unformatted text preview: MCM is demand curve is more elastic than monopoly because high number of substitutes but not perfectly elastic like perfect competition. Exactly how elastic the demand curve will be depends on the number of rivals as well as how effectively the firm can differentiate its product. MR=MC Compensating differential is the difference in wages that offsets difference in working conditions The Law of Diminishing Return s is the concept that, after some point, each individual worker that is hired will add less value than the one hired previously. Chapter 18: Labor Markets...
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- Fall '08