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Akash777 said:can anyone explain me what happens in bilateral monopoly......How many labour are employed?|
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Xenon said:the concept of bilateral monopoly fights against the classical believe that actions of trade union cause unemployment. It shows that trade union can rise both wage and employment up to a certain level (AC = MRP) in the presence of a monopsony employer given that it has the required bargaining power
I was saying that trade union can make a monopsony to employ up to where AC = MRP. In the case where there is just a monospony ( no trade union and assuming it is profit maximizer) the monopsony employs up to the point where MC = MRP which represents a lower employment and wageShahnam said:this is basic concept of the trade union and theory which states that a buyer would continue employing the labour up to the point where MRP=AC.
The bilateral monopoly is different and as stated earlier.. :friends:
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