1. Noncompetitive Factor Markets
L21
Noncompetitive
Factor Markets

2. 2 questions Impact of market power in goods market on labor market
Market Power in labor market

3. SOH (Monopoly)

4. Labor Demand

5. Equilibrium

6. Equilibrium, General Elasticity

7. Monopoly and LM Increasing Labor by 1 gives less than MPL of revenue
Monopoly demands less labor
The reduction of employment depends on elasticity
Monopoly and minimal wage rate?

8. Monopsony Market power on “buyers” side
Most important monopsony: Labor market
Monopsony and minimal wage rate

9. Monopsony

10. SOH (Monopsony):

11. Monopsony: Optimal Choice

12. Minimal Wage Rate

13. Minimal Wage rate: Monopsony
Increases Labor in equilibrium
Increases wage in equilibrium
Restores efficiency