Factor Markets (27)
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9 Terms
What is a monopsony
When there is a single buyer of a product
Is w(x) an increasing or decreasing function. Explain
Increasing, the more x the firms wants to hire, the higher the price it must offer
Is a monopsonist a price maker or price taker for wages
Price maker
So how are wages set by monopsonists?
Looking at the supply curve of workers
Does a monopsonist operate where the supply curve is elastic or inelastic
Elastic
Is a monopsonist a price maker or price taker for output. Why
Price taker, they act in a competitive market
What is the MR for a monopsonist
P x MP
Design method to discern impacts of minimum wages
Differences in differences
Argument of people for versus against increasing minimum wage
Against: increasing MW causes decrease in supply for firms
For: increasing MW causes increase in supply with a monopsony because they’ll just hire more workers
Note 
Flashcards (78)