Control of monopsony relating to market power, Microeconomics

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It is clear that monopsony in the labor market is not steady with allocative efficiency and has the effect of withholding significant amounts the employees' MRP from them, that becomes profits, advertising, charitable expenditures, or payments to other factors that did not earn those payments.  It is clear that like as reallocations are inconsistent with both equity and efficiency and have been the focus of numerous public policies attempting to thwart like misallocations based purely on market power.

 


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