Cannon Mills used to be virtually the only employer in Kannapolis, North Carolina. What is the name for a single hirer of labor, and how do wages and the number of jobs available compare to a competitive labor market?
What will be an ideal response?
Monopsonists hire fewer workers and pay lower wages than comparable competitive firms. For these firms, MLC is above S of labor. Labor input is where MLC crosses MRP, which must be at a lower input level. Wage equals the minimum needed to hire this smaller supply of workers, which must be less than the competitive wage that would lead to more workers hired.
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The bargaining power of suppliers increases if
A) the input supplied is relatively standardized. B) the input in question is not a critical component of production. C) the cost of switching suppliers is relatively low. D) there are only a few competitors to the supplier.
Does the strength of each of the five competitive forces from Michael Porter's model remain constant over time? Briefly explain
What will be an ideal response?
As long as the multiplier process is working, firms will meet additional demand without raising prices
a. True b. False Indicate whether the statement is true or false
If Anh's elasticity of labor supply is 1.5 and she increases her supply of labor by 5 percent, then the wage rate must have
A. Increased by 3.3 percent. B. Increased by 3.0 percent. C. Decreased by 7.5 percent. D. Increased by 7.5 percent.