Tag Archives | Imperfect Competition

Monopolistic Exploitation of Labour | Imperfect Competition

In this article we will discuss about the concept of monopolistic exploitation of labour. Famous English economist, Joan Robinson (1903-1983) has said that, if a factor of production is paid a price which is less than the value of its marginal product (VMP), then we should say that the factor is exploited by its employer. Thus, if labour is paid [...]

By |2016-09-17T15:55:28+05:30September 17, 2016|Imperfect Competition|Comments Off on Monopolistic Exploitation of Labour | Imperfect Competition

Price and Employment under Monopsony

Let us suppose that an entrepreneur uses two variable inputs, labour (L) and capital (K), to produce his output. If there is perfect competition in the input markets, the prices of the inputs are given and constant for the firm. Let us suppose that the prices of L and K are given to be w and r, respectively. Here the [...]

By |2016-09-17T15:55:26+05:30September 17, 2016|Imperfect Competition|Comments Off on Price and Employment under Monopsony

Market Demand (With Diagram)| Economics

In this article we will discuss about the market demand for a variable input under monopoly and imperfect competition, explained with the help of a suitable demand curve. If a group of monopolists producing different outputs use a particular variable input, then in order to obtain the market demand for the input, we have to simply sum up the individual [...]

By |2016-09-17T15:55:24+05:30September 17, 2016|Market Demand|Comments Off on Market Demand (With Diagram)| Economics
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