Monopsony in the Labour Market I A Level and IB Economics

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Monopsony in the Labour Market I A Level and IB Economics

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@tutor2u-official 4 жыл бұрын

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@ramroid 3 жыл бұрын

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@AkhmadTaufiqHidayat 3 ай бұрын

very interesting. thank for video

@tutor2u-official 3 ай бұрын

So nice of you

@nanasaja7366 3 ай бұрын

❤❤

@marketingsam 3 жыл бұрын

Very interesting, is it then fair to say if we had multiple versions of the NHS or say had a bigger private health care system both which would create more labour market competition and assuming the labour supply remained this combo would create higher wages?

@AH77212 2 ай бұрын

Could we say that FDI opening up in areas with low employment opportunities can have some degree of monopsony power such as exploiting desperate workers with lower wages ?

@tutor2u-official 2 ай бұрын

Good evaluation point

@zoyaali1371 2 жыл бұрын

monopsony as the price of labour increases, the marginal expenses on labour A. Increase B. Remain same C. Decrease D. Are very high Plz ans the correct one

@charliegoff8125 7 жыл бұрын

Why wouldn't a "non-monopsony" power firm employ at level E2 anyway? surely this would lead to greater profits for them also? I don't understand why firms would employ more workers just because the labour market is competitive Any response appreciated

@daveharris7692 7 жыл бұрын

oi give geoff a break yeAH?

@Hejsan102 7 жыл бұрын

I know you asked months ago, but if anyone else who stumbles upon this wonders the same thing I hope I can provide an answer. Though this isn't necessarily the right answer, it's only what i think. If you think about a perfectly competitive labor market, the individual firm is a wage‐taker; the firm will take the market wage rate as given. This means that if they tried to pay a lower wage than the market equilibrium, the potential employees would just apply for annother company instead. Thus the company would be forced to pay at least the equilibirum market wage (W1). Assuming that they do, this means that IF they were to hire fewer workers, lets say E2, they would still pay them the wage W1. At this point their marginal product of labour would still be higher than the wage. The company would have an incentive to hire more employees because the value of their product would still be higher than their wage. Thus the company would continue to employ new people until they reach E1, which is where the value of the marginal product of labour is the same as the wage, meaning that at this point the company would not gain anything by hiring an additional employee. So to conclude: because the company will take the market wage rate as given, they will always have an incentive to hire just enough employees so that the marginal product of labour equals the wage. I hope i could make my point clear.