Monopsony
In this lesson on the Monopsony, you will learn the following concepts:

*What is a monopsony?
*Why doesn't the wage rate equal the marginal factor cost of labor for a monopsony?
*How do you graph the MFC and the wage rate?
*How many workers should you hire and at what wage rate if you know the MRP, MFC,
and the wage rate?   
In this lesson on the Monopsony, you have learned the following concepts:

*What is a monopsony?
*Why doesn't the wage rate equal the marginal factor cost of labor for a monopsony?
*How do you graph the MFC and the wage rate?
*How many workers should you hire and at what wage rate if you know the MRP, MFC,
and the wage rate?
Steven M. Reff
Economics Lecturer
University of Arizona
(2007 - 2016)
The 2015 University of Arizona
Five-Star Faculty Award
Watch this 5 minute video below that describes how you draw the
Monoponistic Factor Market Graph where a single employer or buyer of
labor dominates the labor market such as in the mining example above or a
large technology company that dominates the labor market in that region.
The activities below have most everything that might show up on a final exam in college or on the May exam for
students taking an advanced microeconomics course in high school.
Test students on their knowledge of a Monopsonistic Labor Market by playing Reffonomics Baseball Game:

Rules on How to Play Reffonomics Baseball:
https://reffonomics.com/ReffonomicsBaseballGameRules.html

Reffonomics Baseball Perfectly Competitive and Monopsonistic Factor Markets:
https://reffonomics.com/ReffonomicsBaseballPCandMonopsony2BRAeconomics2021.html
- - - - - - - - - - - - - - - - - - - - -
Below is what students inside a college-level Principles of Microeconomics course or a high school student taking an
Advanced Microeconomics course should know for their May exam.
Below is other information that might be helpful in understanding a Monopsonistic Labor Market:
https://reffonomics.com/CE2022unit5microMonopsony.html

NOTE:  The 3rd page of the article on the left has some normative statements, so look at those carefully so as not to
necessarily believe everything you read.
- - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
Below is a link to The College Board® FRQ #3 Form B covering the topic of a Monopsonist -- Scroll Down to Question #3
https://secure-media.collegeboard.org/apc/ap11_frq_microeconomics_formb.pdf
Scoring rubric for The College Board® FRQ #3 Form B covering the topic of a Monopsonist -- Scroll Down to Question #3
https://secure-media.collegeboard.org/apc/ap11_microeconomics_form_b_scoring_guidelines.pdf