Friday
March 27, 2015

Homework Help: economics - monopoly/monopsony

Posted by kevin on Sunday, October 1, 2006 at 11:26pm.

just a quick qusetion....if a firm is both a monopoly and a monopsony. How would the profit maximizing wage and lvl of labour in the short run be determined for this firm


Use the profit maximizing principals. Regardless of the existing market, a firm will hire until the value of the marginal product (VMP) equals the marginal factor cost (MFC). The MFC, the marginal cost for producing 1 more unit of output, for a monopsony is some increasing function of the number of workers already hired. This can be converted into an increasing funciton of the amount of output produced. The VMP is the price a which 1 more unit of output can be sold, and is a decreasing function of output sold.


features of monopoly

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

economics question!! - Suppose a firm is both a monopoly and a monopsony. How ...
Economics - Short run profit maximization - Given the following for perfectly ...
economics - You are hired as the consultant to a monopolistically competitive ...
Economics - Yeah, so I'm in urgent need of help with this homework. 1. Assume ...
Economics - For the following characteristic say whether it describes a ...
Economics - you are hired as the consultant to a monopolistically competitive ...
Economics - A firm is a natural monopoly if: a) its average cost curve falls ...
econ question - 2 questions that im stuck on!!! 1. Suppose a firm has a ...
economics - A monopoly firm is faced with the following demand function P = 13...
Microeconomics - monopoly vs perfect competition - This is a good and fun ...

Members