1. Yglesias provides a few reasons why we're concerned about monopsony power. Describe why this is relevant for the discussion on non-compete agreements.

2. On the third and fourth page of the Yglesias article, he writes, "If companies weren't able to secure those protections, they'd need to pay lower salaries, and we'd all be worse off." Outline an argument for why salaries might be lower if non-competes were banned and also an argument for why they would be higher if they were banned (i.e., explain Yglesias' rationale for this but also provide a reason for why it might go the other way).

3. Cowen takes a more favorable view towards non-competes than Yglesias. Provide two things that the two parties would likely agree on (with regards to policy regarding non- competes) and two things that they would likely disagree on.

Read the excerpt from "Capitalism and Freedom," and respond to the following prompts. In addition to the chapter on occupational licensing, I've included the four preceding pages which outline Friedman's thoughts on the social responsibility of firms. At various times in the news, Friedman will be dragged through the mud as the originator of the idea that firms' sole responsibility is to maximize share-holder value. I wanted to expose you to his actual words on this subject in addition to the primary focus of this reading, his thoughts on occupational licenses.

4. Describe why Friedman argues that firms and labor leaders should not be concerned about their "social responsibility."

5. What are the economic tradeoffs involved with enforcing technical efficiency in a profession?

6.Friedman argues that we do not enforce technical efficiency in large parts of the automobile industry (exceptions are things like emissions regulations via catalytic converters). What might be different about the medical profession that would warrant technical efficiency standards in this market, but not for automobiles?

7. Describe how occupational licensing in medicine lead to worse overall health outcomes.

8. Related to the previous question, how would "the market" discipline quality in medicine if licensing requirements were no longer enforced

9. Non-compete agreements and occupational licensure requirements are both restrictions on labor arrangements. How are they related economically?