Microeconomics - Monopsony & Discrimination

(1 ) trace the name of the psyche who originated the idea of `monopsony` and explain her ideaThe mortal who develop monopsony someoneate was Joan Robinson (1903-1983 Monopsony is a foodstuff where in there is a single vendee of a resource innovation the single vendee , the monopsonist monopolizes the purchase of travail . Robinson developed a chartical sample in which a single buyer of resource could pay a lower than private-enterprise(a) wage and yet attain maximum profit . As shown in the graph below , the single buyer of resource drives apprehend (Q ) until fringy resource cost of push (MRCL equals the demand for labor (DL . DL is also the marginal revenue product of labor (MRPL (2 ) Identify the person who first modeled discrimination as a ` discretion` and the implications of this `taste` for scotch efficien cy and economic equityThe person who developed the Taste for Discrimination model was Gary Becker (b . 1930 .The model came prohibited of his 1955 doctoral dissertation which was revised and published in 1957 downstairs the title The economics of DiscriminationBecker s if applied to the labor merchandise scum bag be described in relatively world-wide terms : employers with a taste for discrimination provide dispense with profits in to meet their desire to employ a specific grapheme of worker . For example , employers with a taste for discrimination a viewst women exit employ less than the profit-maximizing modus operandi of women Instead , they will hire a greater upshot of equally skilled scarce more highly compensable men .

Thus , in a perfectly competitive market non acuate employers can gain a cost reward and ultimately drive discriminating employers out of business . Becker s model suggests that the wage gap amongst men and women will thereof decline as discriminators are forced to leave the market altogether . Thus it will cause an inefficient sparing for discriminating employers until it forces them to leave the marketReferencesC . MacConnell , S . Brue (2005 . Economics : Principles , Problems , and Policies , 16 /e . Origins of Idea (Chapter 28 . Retrieved Nov 24 , 2006 from hypertext transfer protocol /highered .mcgraw-http /highered .mcgraw-hill .com /sites student_view0 /chapter28 /origin_of_the_idea .htmlC . MacConnell , S . Brue (2005 . Economics : Principles , Problems , and Policies , 16 /e . Origins of Idea (Chapter 28 . Retrieved Nov 24 , 2006 from http /highered .mcgraw-http /highered .mcgraw-hill .com /sites student_view0 /chapter28 /origin_of_the_idea .html...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper