Factor Markets

The quantity of labor demanded.

The wage rate paid to workers.

The number of buyers and sellers in the market.

The firm's control over the labor market.

Quantity traded might reduce if both monopolists and monopsonists exert their market power by restricting output and offering lower prices respectively.

Prices drop significantly due to increased competition among sellers who were previously restricted by price floors.

Prices would rise dramatically as monopolists take advantage of their position with less regulatory interference.

The quantity traded increases substantially as efficiency gains from deregulation drive down costs and increase production incentives for monopolies.

The price at which competitors are willing to hire extra labor away from the firm.

The difference between marginal revenue product and marginal resource cost for the last worker hired.

The value of goods or services that could have been produced instead by other uses of resources.

The monetary savings from not having to pay higher wages for additional labor force.

Equal to their marginal revenue product (MRP).

Unrelated to their marginal revenue product (MRP).

Above their marginal revenue product (MRP).

Below their marginal revenue product (MRP).

A price war among suppliers ensues, leading all firms towards perfect competition conditions over time.

Suppliers innovate aggressively leading to rapid technological advancement and reduced input costs across industries.

Input prices are driven down below competitive levels due to collective bargaining power against suppliers.

Suppliers merge forming monopolies themselves hence nullifying any influence from oligopoly-based price leadership tactics used by buyers.

Allocative efficiency improves because taxation corrects for negative externalities created by monopolistic production methods.

There's no significant impact on allocative efficiency because taxes are fully passed on consumers with little change in producer behavior.

Allocative Efficiency generally worsens because taxation further distorts resource allocation away from socially optimal levels.

Taxation has minimal effect on allocative efficiency since monopoly produces already deviate significantly from producing socially optimal quantities.

Marginal product curve

MRP curve

Marginal cost curve

Supply curve

A monopoly occurs whenever single entity controls entire industry sector thereby limiting access competitive alternatives.

Monopolists are firms that face little competition and can influence prices through their level of production.

Monopoly power refers generally both those entities who hold significant sway over specific industries/sectors.

Choosing between hiring an additional worker or maintaining current employment levels at lower wage rates per worker.

Unlike public goods, common resources are rivalrous which leads to overuse and depletion of the resource.

Common resources, like public goods, are both non-excludable and non-rivalrous, creating identical economic issues.

Both experience under-consumption issues since their benefits cannot be restricted only to those who pay for them.

Common resources provide excludability features that prevent non-payers from consumption, ensuring efficiency.

An agricultural produce market with many farmers selling their goods to consumers directly at a farmers' market.

A small town with only one factory hiring workers.

Online retail platforms where numerous third-party sellers offer products to global consumers.

A metropolitan area with multiple tech firms competing for engineers.