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Labour Market - Coggle Diagram

- - - - firm has ability to set wages
      - marginal cost of adding an extra worker is more than the average cost
      - only 1 buyer of labour in market
      - MC = MRP - the firm profit maximises
    - - higher wages can be demanded by limiting the supply of
        labour, by closing firms, or by threatening strike action
      - could cause unemployment
      - can counter-balance exploitative monopsony
        power