Lecture 12: Labour Markets, Wage Discrimination, and International Trade
- Four Cases - Because labour is derived from what you need to reproduce
- Aggregate of labour demand
- OWO: Aggregate of labour supply
- International trades
Labour is a DDD: Four Cases
W - Taker - Doesn't affect W
W - Maker - Must to hire more
Supply production demand
Eloss2 in labour market because L2 is lower
Why ? To sell output produced by last worker, so that output is less valuable
P-taker same as in
Monopsony - Muse to cost of last is if
Not always same as loss in labour
Double E-Loss - 1, 2 Monopoly & Monopsony
"Exploitation" - Worth 11, paid 5. Monopoly exploitation. Biggest gap between PMP & P. Toronto Raptors/UofT
4 firms are competitive, 1 monopoly. All are wage takers.
Monopolist Full Time
Monopolist needs to ear 18- no matter who they were
AGGREGATE (Free Trade)
"Factor price equalization theorem"
If labour is mobile, non traded goods will be the same
Law of one price to work, goofs have to be traded internationally non traded will have local markets.