Microeconomics Chapter 18 – Flashcards
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Bilateral monopoly
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if a union (monopoly seller) faces a monopsony buyer, the situation is called bilateral monopoly
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Derived demand
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derived from the demand for the goods and services that the labor produces
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Hotelling principle
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traders expect the price of a nonrenewable natural resource to rise at a rate equal to the interest rate
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Labor union
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an organized group of workers that aims to increase the wage rate and influence other job conditions
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Monoposony
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a market in which there was a single buyer; a monopsony labor market has one employer
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Nonrenewable natural resources
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resources that can be used only once; oil, natural, gas and coal
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Value of marginal product
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the value to the firm of hiring one more unit of a factor of production
