Competition and labour
| English | 中文 | Pinyin |
|---|---|---|
| labour demand/ˈleɪbə dɪˈmænd/ | 劳动力需求 | láo dòng lì xū qiú |
| monopoly/məˈnɒpəli/ | 垄断 | lǒng duàn |
A decision you can investigate
- A town has one broadband supplier but ten food stalls.
- Customers' alternatives change each firm's ability to raise its price.
Build the explanation
- Competition can encourage lower prices, choice and innovation. Market power can reduce competitive pressure.
- Labour demand 劳动力需求 is linked to the demand for output; skills, productivity and labour supply influence wages.
Match the terms to their precise meanings.
Use these definitions in the particular context of Competition and labour.
Work through the evidence
- A new employer raises demand for local electricians. With unchanged supply, their wage tends to rise.
- A training programme can later increase skilled labour supply and reduce shortages.
What tends to happen when labour demand rises and labour supply is unchanged?
A new employer raises demand for local electricians. With unchanged supply, their wage tends to rise. A training programme can later increase skilled labour supply and reduce shortages.
Test the limits
- A large firm is not automatically a monopoly 垄断, and monopoly does not guarantee high profit.
- A wage comparison must consider skills, working conditions, hours and institutions, not one cause alone.
Which caution belongs to this particular task?
A large firm is not automatically a monopoly, and monopoly does not guarantee high profit. A wage comparison must consider skills, working conditions, hours and institutions, not one cause alone.
The explanation in this lesson makes a conditional claim; relevant context and evidence still matter.
A wage comparison must consider skills, working conditions, hours and institutions, not one cause alone.
Apply and explain your answer
- What tends to happen when labour demand rises and labour supply is unchanged?
- The market wage tends to rise.
Choose the two statements supported by this lesson.
The concept and worked evidence support these claims; the stated limits rule out the universal shortcut.
Use the terms precisely
- monopoly: A market dominated by a single supplier.
- labour demand: The workers employers are willing and able to hire.
A new employer raises demand for local electricians. With unchanged supply, their wage tends to rise. A training programme can later increase skilled labour supply and reduce shortages.
A large firm is not automatically a monopoly, and monopoly does not guarantee high profit. A wage comparison must consider skills, working conditions, hours and institutions, not one cause alone.
Competition can encourage lower prices, choice and innovation. Market power can reduce competitive pressure.