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Zorluk: OrtaMonopsony and Other Buyer-Dominated Market Structures

In a regional economy, a single state-owned postal corporation operates as the sole employer hiring specialized mail logistics sorters. If this monopsonist operates to maximize profit, which of the following describes the wage rate and employment level established in this labor market compared to a perfectly competitive equilibrium?

  1. A lower wage rate and a lower level of employmentCevap
  2. B
    A higher wage rate and a higher level of employment
  3. C
    A lower wage rate but a higher level of employment
  4. D
    A higher wage rate but a lower level of employment

Cevap

A lower wage rate and a lower level of employment
A monopsonist is the sole buyer in a factor market and faces an upward-sloping supply curve. Consequently, hiring additional units of labor increases the wage required for all units, causing the Marginal Factor Cost (MFCMFC) curve to lie above the Average Factor Cost (AFCAFC / labor supply) curve. The firm equates MRPLMRP_L with MFCLMFC_L to determine employment level LmL_m and pays wage WmW_m from the supply curve. Compared to a competitive labor market (where MRPL=SLMRP_L = S_L), the monopsonist hires fewer workers and pays a lower wage rate.

Adım Adım Çözüm

1
Analyze the monopsonist's cost structure relative to the supply curve
Since the firm is the sole buyer, it faces an upward-sloping factor supply curve (SL=AFCS_L = AFC). To hire an extra worker, it must raise wages for all workers, making MFC>AFCMFC > AFC.
Understanding why the Marginal Factor Cost curve lies above the labor supply curve is necessary for determining the firm's profit-maximizing input usage.
2
Determine the equilibrium employment level
The monopsonist maximizes profit where Marginal Revenue Product of Labor (MRPLMRP_L) equals Marginal Factor Cost (MFCLMFC_L), selecting employment quantity Lm<LcL_m < L_c.
Equating marginal benefit (MRPLMRP_L) to marginal cost (MFCLMFC_L) yields the profit-maximizing hiring quantity.
3
Determine the equilibrium wage rate and compare with perfect competition
The wage rate WmW_m is read off the labor supply curve at quantity LmL_m, giving Wm<WcW_m < W_c and Lm<LcL_m < L_c.
Compared to perfect competition where MRPL=SLMRP_L = S_L, monopsony restricts hiring to pay a lower factor price.

Anahtar Kavram

Monopsonistic Exploitation and Factor Market Equilibrium
Tahmini Süre:1m 0s
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Monopsony and Other Buyer-Dominated Market Structures

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