How various factors such as monopsony power, trade unions and imperfect information contribute to imperfections in a labour market
Real labour markets are not perfectly competitive. Monopsony power, trade unions, and imperfect information all distort wages and employment away from the competitive outcome.
Real World
Amazon's dominance as an employer in towns like Rugeley meant local workers had little choice but to accept its pay and conditions, a real-world example of monopsony power suppressing wages below the competitive rate.
Exam Focus
For 'evaluate' questions, weigh each imperfection against the perfectly competitive benchmark — show you understand the ideal before critiquing reality.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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