the marginal cost of labor remains constant (since each additional unit is paid the constant minimum wage rather than a higher amount), and the quantity of labor hired increases. It is shown in the diagram below:
Explain the theory of sticky wages using your own words (and potentially the AS/AD diagram). How does monetary policy influence Aggregate Demand in the short run? Why is the AS curve upward sloping? How is the open-access equilibrium determined? How is the econo...
Dictionary of Unfamiliar Words by Diagram Group Copyright © 2008 by Diagram Visual Information Limited ThesaurusAntonymsRelated WordsSynonymsLegend: Switch tonew thesaurus Noun1.monopsony- (economics) a market in which goods or services are offered by several sellers but there is only one buyer ...
the marginal cost of labor remains constant (since each additional unit is paid the constant minimum wage rather than a higher amount), and the quantity of labor hired increases. It is shown in the diagram below: