AREC 384 price analysis: factor markets

factor market
- market for inputs that firms demand like:
- labour
- capital
- materials
monopsony
- concerned with a single buyer
- wants to pay as little as possible (lower than marginal value), so restricts the amount it buys
- ex. large factory in a small town
- large processor (only buyer of hogs, cattle)
social costs of monopsonist pricing behaviors?
- reduced producer surplus
- deadweight loss
- rent seeking
- regulation

Author

hcunning

324978

Card Set

AREC 384 price analysis: factor markets

Description

lecture 7

Updated

2016-10-26T21:29:34Z

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