Share This Article:

Economic Definition of minimum wage monopsony. Defined.

Offline Version: PDF

Term minimum wage monopsony Definition: A minimum wage is a legally established floor on the wage rate that employers can pay their workers. Monopsony is a market structure dominated on the demand side by a single buyer. Contrary to standard analysis, imposing a minimum wage on monopsony market can actually increase employment.

 

« factor market analysis monopsony | moral hazard »

Permalink: https://glossary.econguru.com/economic-term/monopsony,+minimum+wage

Alphabetical Reference to Over 2,000 Economic Terms