Paying a wage to an employee that is lower than the employee's marginal revenue product is sometimes referred to as

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Monopsonistic exploitation occurs when an employer pays a wage lower than the employee's marginal revenue product when the employer is the sole buyer of labor in a labor market. This results in the employee receiving less than the value they bring to the company. It is not illegal in most states, and while it may be exploitative, it is not considered total exploitation. Monopolistic exploitation is not a commonly used term in economics.

Paying a Wage to an Employee That Is Lower Than