Factor Markets (Part 5): Monopsony and Minimum Wages

In a monopsony situation, minimum wages can lead to an increase in hiring...yes, and this is using orthodox economic concepts. Just like price ceilings (theoretically) can increase the quantity supplied of goods for which monopolies exist, price floors (minimum wages) can lead to an increase in hiring where firms have excessive market power. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.