Micro Unit 5, Question 12: Monopsony

The video tutorial explains the concept of perfect competitive resource markets and introduces monopsony, a market condition where a single firm is the sole employer. It discusses how monopsony differs from perfect competition, particularly in terms of wage setting and marginal resource cost. The tutorial also covers how equilibrium wage and quantity are determined in a monopsony, highlighting the differences in hiring and wage levels compared to a perfectly competitive market.

Discuss the implications of wage discrimination in a monopsony.

What are the differences in hiring practices between a monopsony and a perfectly competitive market?