Category Archives: Economic fundamentals

The Labor Market: 2. Permanent Unemployment

by Lindy Davies In the last post I showed that the market for unskilled, unregulated labor is perfectly competitive. The econ-speak definition of that is “a market in which profit is maximized when price equals marginal cost.” And in theRead the Rest »

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The Labor Market: 1. Basics

by Lindy Davies It is often said that “perfect competition” doesn’t actually happen in the real world, that it is merely a theoretical ideal used to illustrate points in Econ texts. The goods commonly cited as examples of perfect competitionRead the Rest »

Posted in Competition, Economic fundamentals, Labor Markets | Leave a comment