Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
monopsony monopolistic exploitation of labor marginal factor cost (MFC) monopsonistic exploitation of labor | Occurs when workers are paid less than the value of their marginal product because the firm has monopoly power in the product market The added cost associated with hiring one more unit of labor. For competitive firms, it is equal to the wage; but for monopsonists, it is higher than the new wage (W) because all existing workers must be paid this higher new wage, making MFC > W Occurs when workers are paid less than the value of their marginal product because the firm is a monopsonist in the labor market A labor market with one employer |