Wage Determination View Chapter 28

I. Productivity and Markets Determine Wages
     A. Introduction
        1. Wage determination is of interest because most people devote much of their time to earning activities.
        2. Wage earners include blue and white collar workers and professionals.
   B. Factors affecting labor productivity
       1. Labor Quality (health, education, etc.
       2. Quantity, quality of capital supporting labor
       3. Geekability the New Intelligence
       4. Management efficiency
       5. Business, social and political climate
       6. Cost and availability of natural resources.

C. Wage determination models

II  Competitive Model

III. Monopsony Model

 V.Bilateral monopoly

IV. Oligopsony a few buyers, often yield a similar result. 
      American tobacco growers face an Oligopsony of cigarette
      makers, where three companies (Altria, Brown & Williamson,
      and Lorillard buy almost 90% of all tobacco grown in the US.