Assume in a small town a factory is a monopsonistic employer. The mayor of the town...
Assume in a small town a factory is a monopsonistic employer. The mayor of the town is willing to increase the employment level in the town and he asks you what kind of a policy he might use to achieve this aim. What would you suggest to him?
Homework Answers
The Policies which i would suggest him are:
- The taxes should be reduced on the produce of the factory goods
- the basic health benefits for the employees should be covered by the state
- The state should provide necessary training to the employees
- The state should not allow a union to bargain
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