Introduction 2 Introduction 3 Introduction 4

Introduction 2

Introduction 3

Introduction 4

Monopsony Wage and Employment Determination 5

Monopsony Wage and Employment Determination 6

Monopsony Wage and Employment Determination 7

Monopsony Wage and Employment Determination 8

Monopsony Wage and Employment Determination 9

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Profit Maximizing 11

Profit Maximizing 12

Profit Maximizing 13

Profit Maximizing 14

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Inefficient Monopsony Market 16

Inefficient Monopsony Market 17

Inefficient Monopsony Market 18

Lerner Index 19

Lerner Index 20

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Monopoly in the Supply of Inputs 22

Monopoly in the Supply of Inputs 23

Figure 17. 3 Monopoly in the input market 24

Bilateral Monopoly and Bargaining 25

Bilateral Monopoly and Bargaining 26

Bilateral Monopoly and Bargaining 27

Figure 17. 4 Bilateral monopoly 28

Bilateral Monopoly and Bargaining 29

Bilateral Monopoly and Bargaining 30

Labor Unions 31

Unions’ Influence Over Wages 32

Unions’ Influence Over Wages 33

Unions’ Influence Over Wages 34

Unions’ Influence Over Wages 35

Unions’ Objectives 36

Figure 17. 5 Labor union’s objectives 37

Unions’ Objectives 38

Figure 17. 6 Labor union’s wage and employment 39

Long-Run Consequences 40

Long-Run Consequences 41

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