were not a monopsonist but a perfect competitor in the market for labor? 8. Acme is the

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were not a monopsonist but a perfect competitor in the market for labor?

8. Acme is the sole supplier of security systems in the product market and the sole employer of locksmiths in the labor market. The demand curve for security systems is given by P  100  Q, where Q is the number of systems installed per week. The short-run production function for security systems is given by Q  4L, where L is the number of full-time locksmiths employed per week. The supply curve for locksmiths is given by W  40  2L, where W is the weekly wage for each locksmith. How many locksmiths will Acme hire, and what wage will it pay?

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