Question: Monopsonistic Discrimination If the labor force is separable into two groups- A and B (discriminated group), with equal productivity (same MRPI) but different labor supply

 Monopsonistic Discrimination If the labor force is separable into two groups-

Monopsonistic Discrimination If the labor force is separable into two groups- A and B (discriminated group), with equal productivity (same MRPI) but different labor supply elasticity, the rm can exploit the wider divergence between the marginal revenue product and the wage for the discriminated-against group to increase profit. Wage Rate

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