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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
Wage and Employment Determination Under Imperfect Competition 201
that initially labour market is not unionized, i.e., there is no labour union. us, we have a case in
which labour is supplied competitively and demanded monopsonistically. In that case, equilibrium will
take place at a point where MRP
L
= MC
L
. e equilibrium is thus attained at point E in Figure 8.11.
e equilibrium wage rate is OW
U
and equilibrium employment is OL
M
where wage oered by the
monopolist is OW
M
.
Let us assume now that labour market is unionized. What labour union will do depends on what it
wants to achieve—maximum employment or maxim ...
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Publisher Resources

ISBN: 9788131797655