Imperfectly Competitive Labour Markets (AQA A-Level Economics): Flashcards

Market with only one buyer of labour

Joan Robinson

Market power exercised by a buyer of labour services

Must pay higher wage to all existing workers too

MCL lies above ACL (supply curve)

Where $MRPL = MCL$

Lower wage and lower employment

Disequilib, info gaps, occup/geo immobility, discrimination

Association of workers to protect & promote their interests

Unions bargain with employers on behalf of members