What is a mono phony? Explain its characteristics as applied to a labor market
What will be an ideal response?
A mono phony is any market in which there is one buyer. In the case of a labor market, if an employer has monopolistic power it would be an example of a mono phony. With a labor market mono phony, the number of workers hired by the firm constitutes a large percentage of the total labor force of that kind of labor. Also, the workers hired by a monopolist tend to be immobile and often lack alternative opportunities for employment unless they acquire new skills or are willing to leave the community. The monopolist is a “wage maker” because the wage rate that it pays labor is directly related to the number of workers employed: the more workers the firm wants to employ, the higher the wage rate it must pay. Real-world examples of mono phony would include mining companies in remote rural locations, or any large firm in a small community that is a dominant employer of a particular type of labor.
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Fresno County, California is the largest agricultural producing county in the country and almonds are an important crop with more than 99,000 acres harvested. Each acre produces about a ton of almonds and sold at a price of $4300 a ton
The Sagardia Brothers grew 600 acres of almonds. What would happen if the Sagardia Brothers priced their almonds at $4500 a ton? A) Profits will be higher than when they sell them at the lower price. B) The quantity sold will be higher. C) They will not sell any almonds. D) They will sell fewer almonds, but profits will be higher.
Please draw a figure illustrating the actions the central bank must take to maintain a fixed exchange rate following an increase in output
What will be an ideal response?
If Happy Cleaners and Sparkle Cleaners are in a Cournot oligopoly, the Cournot equilibrium will ________.
A) occur at a point on Happy Cleaners' best-response curve, but not Sparkle Cleaners' best-response curve B) provide an incentive for both firms to adjust their output C) occur at the intersection of Happy Cleaners' and Sparkle Cleaners' best response curves D) only occur if Happy Cleaners and Sparkle Cleaners form a cartel
A reduction in the cost of cable TV subscriptions will ________ the ________ for televisions
A) decrease; supply
B) decrease; demand
C) increase; supply
D) increase; demand
E) None of the above is correct.