Basic purpose of this article is to Discuss on Equilibrium in a Monopsony Market. Here discuss Monopsony Market in economics perspective. In a monopsony market, the monopsonist firm—like any profit‐maximizing firm—determines the equilibrium quantity of workers to hire simply by equating its marginal revenue product of labor having its marginal cost of labor. As the monopsonist is the just demand of labor already in the market, it has the capacity to pay wages below the actual marginal revenue product of labor and also to hire fewer workers than any perfectly competitive firm.
Discuss on Equilibrium in a Monopsony Market
