Principles of Microeconomics / Unit 13 MIC 1223 short lesson, about 20 seconds
Bilateral Monopoly
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The idea
When a union meets a monopsonist, both want employment below the competitive level. The wage is indeterminate, between the monopsony wage and the most the employer would pay.
In practice
Between one hundred and one eighty for the town's fourth worker.
Where people slip
Any wage won above the monopsony wage raises employment, since it flattens marginal factor cost like a floor.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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