Monopsonistic Markets
AP Microeconomics · Flashcards
AP MICROECONOMICS · FLASHCARDS
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QUESTION
Under monopsony, what can a moderate minimum wage do to employment relative to no minimum wage?
QUESTION
With a binding minimum wage, what is the monopsonist's
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MFC
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for labor up to the available workers?
QUESTION
In a monopsony, how does
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MFC
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compare to
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AFC
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(labor supply) above the first worker?
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ANSWER
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>
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MFC > AFC
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>
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for additional labor units. Must raise wages for all workers to attract more, so marginal exceeds average.
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