-Single seller, unique product, price setting power, barriers to entry, can attain monopoly profits unless regulated. The firm sets the price. Competition: -Many sellers, identical products and cost structures, easy entry. No individual firm sets price, normal profits result (as much as any other opportunity available to the owner at the time they enter the market). Supply=Demand determines the price of the product. Labor Market -Workers: Offer an amount and type of labor for a wage, depending upon their preferences and the opportunity cost of their time. -Employers: Hire their profit maximizing quantity of labor (which depends upon their product market price, technology, other inputs costs and the labor market wage). -The wage in the labor market depends on whether its competitive or not (lets assume it is, for simplicity). -In competitive labor markets supply=demand determines the wage rate. Whitehead on Conservative and Liberal Paradigms
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