Standards for AP Microeconomics – Competition versus Monopsony in Labor Markets

Name: Competition and Market Structure

Standard: 9

• Students will understand that: Competition among sellers usually lowers costs and prices, and encourages producers to produce what consumers are willing and able to buy. Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them.
• Students will be able to use this knowledge to: Explain how changes in the level of competition in different markets can affect price and output levels.