Given a monopsony employer, setting a minimum wage equal to the competitive equilibrium wage is efficient because it removes the monopsony dead weight loss.
The monopsony approach to the labor market says they’re the rule. A company doesn’t actually formally have to be the only buyer of labor power in its region to hold monopsony power.
Given a monopsony employer, setting a minimum wage equal to the competitive equilibrium wage is efficient because it removes the monopsony dead weight loss.
Agreed! Thanks, that is certainly the caveat I would add. In real world, monopsonies are however rare to nonexistent
The monopsony approach to the labor market says they’re the rule. A company doesn’t actually formally have to be the only buyer of labor power in its region to hold monopsony power.