Lecture

Monopsony and Imperfect Competition

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In course

MGT-454: Principles of microeconomics

The course allows students to get familiarized with the basic tools and concepts of modern microeconomic analysis. Based on graphical reasoning and analytical calculus, it constantly links to real economic issues. ...

Description

This lecture explores the concept of monopsony, where a single buyer faces multiple sellers, leading to deviations from perfect competition. It delves into scenarios of monopsony in labor markets, analyzing wage rate determination, labor supply elasticity, and marginal cost of labor. The lecture also covers perfect competition, monopolistic exploitation of labor, and various market structures like duopoly and oligopoly. It discusses equilibrium conditions, profit maximization strategies, and the impact of different market structures on pricing and production decisions.

Official source

Ontological neighbourhood

Economics

Macroeconomics: Competition, Markets

Microeconomics: Labor economics

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Market structure, in economics, depicts how firms are differentiated and categorised based on the types of goods they sell (homogeneous/heterogeneous) and how their operations are affected by external factors and elements. Market structure makes it easier to understand the characteristics of diverse markets. The main body of the market is composed of suppliers and demanders. Both parties are equal and indispensable. The market structure determines the price formation method of the market.

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Oligopoly

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