Question

Will medal and FAN.
Can anyone help me understand monopsony power?

Answer 1

A monopsony occurs when a firm has market power in employing factors of production. A monopsony means there is one buyer and many sellers. This is a similar concept to monopoly where there is one seller and many buyers.

Answer 2

okay so how would this work in a labor market? Sorry I have an assignment that asks a question which is very confusing

Answer 3

Um.. Hold on

Answer 4

should I just post the assignment question? I feel that would help

Answer 5

How many workers should the grove owner hire? Why?
The groove own should hire 7 workers, because they meet the marginal point of wage, and input costs. The 8th,9th, and 10th worker lose money for the firm. They decrease the marginal revenue of labor production. Each worker is paid a fixed cost of $48.00. Up to7 workers generate a sufficient amount of revenue, without losing marginal labor product or declining the profit change per day.

How does your answer change if a large Brazilian company buys up all of the groves in central Florida, creating monopsony power for this company?

Answer 6

Sorry I am not sure! I am not sure what to do. I just know what in means.

Answer 7

thats okay maybe @Serenity74 can help.

Answer 8

@Serenity74

Answer 9

i believe the competition and wages would change

Answer 10

if more groves were bought out, the company wouldnt b able to buy as much & may even have too many workers causing them to lay people off....