Social Sciences and History / Unit 14 SSH 1302 short lesson, about 20 seconds
Monopsony: One Buyer of Labor
Captions available
The idea
A monopsony is the sole employer in a labor market. To hire more workers it must raise the wage for all, so the marginal cost of labor exceeds the wage. It hires where that marginal cost equals its labor demand: fewer workers, lower wage.
In practice
The one mill in a mill town.
Where people slip
Monopoly is one seller; monopsony one buyer.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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