monopsonistic exploitation
Not what you're looking for?
See the attached file.
From Figure 1, a monopsonist's supply curve is the same as the market supply curve, and the marginal revenue product curve of team owners, the extra revenue generated by an additional worker, is represented by MRP. The marginal cost curve facing the team owners, is MC. The marginal cost curve is greater than the cost of additional purchases since the monopsonist must spend more on all of its purchases. The intersection of MRP and MC is at A. The quantity demanded of baseball players is Qm. The wage rate presented to baseball players is wm. The amount of monopsonistic exploitation is the distance between A and O. The amount of monopolistic exploitation is the distance between A and B. Total exploitation is the vertical distance between B and C.
Where is O??
Can you draw it in on the diagram??
Purchase this Solution
Solution Summary
This solution highlights the monopsonistic exploitation.
Solution Preview
I'm pretty sure that "O" is a type error, which should actually be "C".
Also S curve is also the owner's marginal cost curve.
In this figure, MFC (Marginal factor cost) is the cost of hiring one more worker, and MRP is the extra revenue generated by an additional ...
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.