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  • Print publication year: 2016
  • Online publication date: May 2018

Book IV - Competitive and monopoly market structures

Summary

In Chapters 10, 11, and 12 of this book, we use the demand theory and cost structures developed in Chapters 7 through 9 to examine the organizational and production decisions under four market structures:

  • • perfect competition
  • • pure monopoly
  • • monopolistic competition
  • • oligopoly.
  • In Chapter 13, we revisit the market for a critical resource input, labor. We review and extend our analysis of how wage rates are determined in competitive labor markets, first briefly considered in Chapter 3. We then explain how a sole employer in a given market, called a “monopsony,” will determine the wage rate it will pay its workers.