What determines the demand for labor for a firm operating in a perfectly competitive output market? What determines the demand for labor for a firm with market power in the output market? How does monopsony affect the equilibrium wage and employment levels? How does a bilateral monopoly affect the equilibrium wage and employment levels compared to a perfectly competitive labor market? Will a free market tend to encourage or discourage discrimination? Explain briefly. What factors can explain the relatively small effect of low-skilled immigration on the wages of low-skilled workers? 162