16GottLMktMonopsonyShow

16GottLMktMonopsonyShow - Ch. 16 Monopsony and Labor Unions...

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16 - 1 Ch. 16 Monopsony and Labor Unions Market SS L facing the monopsonist Monopsonist’s MLC SS L offered by the union Collective bargaining
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16 - 2 Ch. 16: Wages and Unemployment: Monopsony and Labor Unions Questions: What determines the wage for workers. How many workers will a firm hire? Two changes: monopsony in input market (one employer). monopoly in input market (union).
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16 - 3 Monopsony : One Buyer of Labor Example: one coal mine. If monopsony, firm can choose the wage rate. How does it decide?
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16 - 4 EXHIBIT 1 SS L FACING MONOPSONIST P Q Inverse, independent, or direct? Why?
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16 - 5 EXHIBIT 2A MLC AND THE SS OF LABOR If firm increases w to attract more workers, it must increase the wage rate of ALL employees. Are w and MLC equal? Why or why not?
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16 - 6 EX. 2B RELATIONSHIP: MLC CURVE AND THE SS L Why does the MLC curve lie above the SS L ?
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16 - 7 Hire how many workers? Revenue-maximizing rule
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This note was uploaded on 07/14/2010 for the course ECON 1 taught by Professor Bergstrom during the Fall '07 term at UCSB.

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16GottLMktMonopsonyShow - Ch. 16 Monopsony and Labor Unions...

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