Principles of Microeconomics / Unit 13 MIC 1210 short lesson, about 20 seconds
Hiring Under Imperfect Competition
Captions available
The idea
A firm with market power must cut price to sell more, so an added worker's output earns marginal revenue, not price. Its marginal revenue product is below the competitive value, and it hires fewer at any wage.
In practice
The same worker is worth less to a monopolist.
Where people slip
The rule is unchanged; only the revenue side shrinks.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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