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Microeconomics II
book

Microeconomics II

by D.N. Dwivedi
August 2011
Intermediate to advanced content levelIntermediate to advanced
368 pages
14h 51m
English
Pearson India
Content preview from Microeconomics II
192 Chapter 8
product market causes wage rate to be lower than the value of marginal product (VMP
L
) as is the case in
a perfectly competitive product market. us, according to Joan Robinson, OW
C
OW
M
= W
C
W
M
is the
extent of exploitation under monopolistic competition.
Criticism Joan Robinson’s view on monopolistic exploitation of labour has, however, been questioned
on the ground that lower wage payment is inevitable because of divergence between MRP
L
and VMP
L
.
e MRP
L
is lower than VMP
L
(at all levels of employment) not because of monopoly powers of the
monopolistic sellers but because of product dierentiation. Product dierentiation creat ...
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Publisher Resources

ISBN: 9788131797655