Question
1.A monopsonist's products are sold in a perfect competitive market at a price of $6. If the firm's TFC=5L+2L 2 and in the short run,
1.A monopsonist's products are sold in a perfect competitive market at a price of $6. If the firm's TFC=5L+2L2 and in the short run, its marginal product equals 10.
1)How many units of labor will she employ and what wage will she pay?
2)Assume now the monopsonist firm's product is in a monopoly market with demand function P=80-2Q. How many units of labor will she employ and what wage will she pay?
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Dynamic Business Law
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs
6th Edition
1260733971, 978-1260733976
