Market Power

Sources of Employer Power in the Labour Market

Bargaining Power

Analyzing Economic Power in a Business Scenario

A large tech company is the only major employer in a small, isolated town. As a result, it can offer wages below the industry average. Separately, to meet a tight deadline, a manager tells their team they must work an upcoming weekend, stating that anyone who refuses will be fired. How can the two forms of economic power at play be best distinguished in this scenario?

Match each form of economic power with the scenario that best exemplifies it.

Distinguishing Forms of Economic Power

Identifying Economic Power in a Labor Scenario

A pharmaceutical company holding the exclusive patent for a life-saving medication exercises 'power over others' when it doubles the drug's price, because patients are compelled to purchase it to survive.

A technology firm is the sole provider of a specialized software essential for the operations of many small businesses. The firm decides to increase its annual subscription fee by 50%, knowing that its customers have no viable alternatives and must pay the higher price to continue operating. The firm is exercising the form of economic power known as _______________.

Evaluating the Impact of Economic Power in the Gig Economy

When an employer successfully compels an employee to perform an undesirable task by threatening termination, which of the following is the most crucial underlying economic condition that gives this threat its force?

Evaluating an Employer's Use of Economic Power

Power Over Others