Factor Demand Theory Under Perfect Competition, Monopoly, and Monopsony,
RAND CORP SANTA MONICA CALIF
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This paper contains three parts. First, the factor demand conditions under monopoly are examined because the basic methodology here will be applied to subsequent cases. Second, perfect competition will be examined using the traditional model, and then using the general model and finally monopsony in some factor markets is also considered. Monopsony conditions, i.e., an upward sloping supply curve to the firm, are faced, for example, when the Department of Defense attempts to enlist individuals for the AVF All-Volunteer Force. As such this paper should be of interest for those in the military manpower area.
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