If theres only one firm in the market, they pay less. Marginal cost of labor is going to be equal to
marginal revenue of labor
Oligopsonistic- very few firms that are hiring labor. Lower price, smaller quantity of labor hired.
In the old days, antitrust h
Exam 1 Study Guide
Be familiar with the first three chapters of Adam Smiths Wealth of Nations, found in our
source book or here: http:/www2.hn.psu.edu/faculty/jmanis/adam-smith/wealthnations.pdf
The greatest improvements in the productive powers o
2014 Quiz 2
1. (4pts) Give an example of a situation that is Pareto efficient, but not economically
efficient, and an example that is economically efficient, but not Pareto efficient. Carefully
explain why both examples are applicable.
Monopsony-market where theres only one buyer.
Reservation wage-the wage that must be paid to get someone to flee to that job.
The more people you have working eventually, the value that they add will start to diminish
(common sense, if you had 100 people
Fall 2014 Quiz 1
Score out of 10 points.
1. (6 pts) List six major ways that the world has been changing and give an example of
Technological Change-The introduction of 3d printing has a lot of promising possibilities