Economics 2182A/B Lecture Notes - Lecture 15: Marginal Revenue Productivity Theory Of Wages, Marginal Revenue, Monopsony
19 Nov 2018
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Lecture 15: chapter 5 labor negotiations in sports (cid:894)con"t(cid:895) Announcements: the final exam is cumulative and will have similar questions as the midterm. If you would like to see your exam, you can come in to see it during office hours. Athletes fall under a monopsony because once they sign a contract, the team is the only buyer. Monopolies intentionally keep the quantity low so they can jack up the price and increase profit: total revenue = price x quantity, marginal revenue = derivative of tc/derivative of quantity. The monopsonist problem: you are given a labour/supply function (eg. w = 5 + 2l), a production function (eg, you are given a labour/supply function (eg. w = 5 + 2l), a production function (eg. q = It boils down to how easy or difficult it is for the employer and employees to agree to terms.
