One book examining this condition questions what happens if an employer cuts wages by one cent; that book's arguments are based on the fact that there is high friction in the labor market and that employers set wages.
One book examining this condition questions what happens if an employer cuts wages by one cent; that book's arguments are based on the fact that there is high friction in the labor market and that employers set wages. Alan Manning wrote about this condition "in Motion." In this condition, a minimum wage higher than the most efficient value normally can result in higher employment. (*) The intersection of the demand curve and the marginal expenditure curve characterize the profit maximizing quantity in this condition. The supply curve becomes the average expenditure curve in this condition. For 10 points, name this market condition in which there is effectively only one buyer for a good.
One book examining this condition questions what happens if an employer cuts wages by one cent; that book's arguments are based on the fact that there is high friction in the labor market and that employers set wages.
monopsony