Lecture 10C - Monopsony

This video explains the theory behind a monopsony firm, and why price controls (like a minimum wage) may actually increase efficiency in monopsony markets.

0:00 Introduction to Monopsony
1:31 Minimum Wages & True/False Question
2:08 Table Example: # Workers Hired--No Minimum Wage
9:20 Table Example Continued: WITH Minimum Wage
12:27 Graphic Illustration: Monopsony
14:59 Graphic Illustration: Optimal Minimum Wage
17:09 Calculating # Workers to Hire