Principles of Microeconomics / Unit 13 MIC 1217 short lesson, about 20 seconds
Marginal Factor Cost Above the Wage
Captions available
The idea
For a monopsonist, one more worker costs the wage plus the raise for everyone already hired, so marginal factor cost exceeds the wage. The anchor's name is the marginal cost of labor.
In practice
The fourth at one hundred, plus twenty each to three others: one sixty.
Where people slip
The twin of monopoly: marginal revenue below price there, marginal factor cost above the wage here.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it