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- W2495622561 abstract "This paper compares the private costs for a perfectly competitive industry with those of a monopoly, given an upward-sloping supply curve for an input and the assumption that the perfectly competitive firms view the input supply curve as horizontal. The analysis shows that the marginal private cost curve of the perfectly competitive industry lies above that for a monopoly -monopsonist and, under certain conditions, the latter will represent marginal social cost. Such a position is consistent with the recent literature on fair wage rates and labor effort. In this case, the perfectly competitive industry will produce a greater than socially optimal output. This result will not hold, however, if perfectly competitive firms correctly perceive that the input supply curve is upward sloping." @default.
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- W2495622561 date "1994-06-22" @default.
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- W2495622561 title "Effects of Monopolization in an Increasing Cost Industry" @default.
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