monopsony labour market Flashcards
1
Q
what is a monopsony?
A
the sole employer of labour in a given profession
2
Q
examples of professions employed by monopsonies?
A
eachers nurses
3
Q
are monopsonies wage makers or takers?
A
wage makers as they set them
4
Q
how do monopsonies try to maximise revenue?
A
monopsonies maximise their revenue from workers by hiring up to where MRP=MC(L)3
5
Q
in a competitive market how are wages and quantity determined?
A
where demand = supply
6
Q
in a labour market what do monopsonies reduce?
A
in a labour market monopsonies reduce the quantity of employees and wages
7
Q
when do the monopsonies have greater power?
A
the lower the wages are compared to MRP the greater the monopsony power in that market
8
Q
whats a negative of monopsonies?
A
monopsonies are very inefficient
