Answer this labor economics question in 100 words

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Explain why, under monopoly in the product market, labor is not efficiently allocated. 

Oct 3rd, 2015

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Monopoly is a situation in which a single company or group owns all or nearly all of the market for a given type of product or service. By definition, monopoly is characterized by an absence of competition, which often results in high prices and inferior products. Monopolist behave in the same way as their competitor by determining its profit-maximizing level of employment where Marginal Revenue Product=MWC.This equality produces a lower level of employment than would occur under competitive product market conditions.

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Sep 15th, 2015

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