Authors libby rittenberg 761

offset what they perceive as unfair market power on the part of buyers of their products Workers may join together in a union in order to enhance their bargaining power with their employers Each case is discussed below Monopoly Suppliers A firm with monopoly power over a particular factor can be expected to behave like any other monopoly It will choose its output where the marginal revenue and marginal cost curves intersect and charge a price taken from its demand curve Figure 14.11 Monopoly Factor Supply A monopoly supplier of a factor of production acts just as any other monopoly firm Here, the monopoly faces the demand curve D and the marginal revenue curve MR Given the marginal cost curve MC, it maximizes profit by supplying Qm and charging a price Pm A monopoly supplier of a factor faces a demand curve that represents the MRP of the factor This situation is illustrated in Figure 14.11 Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 761