NicholasAlexander

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Six economics misconceptions of mine which I've resolved over the last few years

Agreed! Thanks, that is certainly the caveat I would add. In real world, monopsonies are however rare to nonexistent

Six economics misconceptions of mine which I've resolved over the last few years

This hypothetical is more an analysis on the constraints (monopoly employer, closed system, static labor supply / demand, static prices) than on the effect of the minimum wage on consumption. It ignores that the minimum wage harms both employers and employees that would be hired absent a minimum wage.

A minimum wage will be inefficient in all situations relative to a taxing more inelastic economic activity and redistributing the proceeds.