Question

what are some examples of a monopolistic market? How would this market affect employee wages? What are any other concerns with this market?

Answer 1

The monopolistic market is a situation existence of the many firms producing the similar but differentiated products the competation in such market exist between firms and for products and labors.

Example Automobile industry, Electrical goods, Smartphone manufacturing are the example of the monopolistic competation.

Under monopolistic industry the wages are paid to the labors is efficiency wage, in other words, paying more than their marginal productivity due to following the reasons

• To reduce employee attrition
• To motivate work more
• To improve their productivity
• To retain best quality labors in their hand's otherwise labors may join competitors

Thus these are the main concerns of the monopolistic market.