2. (7 points) Urban Labor Markets Part II. Suppose we have two cities, A 3: B. Suppose A's labor market is a complete monopsony, and B's market is perfectly competitive. The labor market for A is given by: Demand: W34 = 35 3 a: L: Supply: qu = 5 + 1.5 a: L? The labor market in B is given by: Demand: We? = 40 - 2 * LE Supply : W53 = 4 + L\"? (a) (2 points) Solve for the monopsonist equilibrium in city A and the competitive equilibrium in city A. Compare them. Note: Not a typo, solve both equilibria for city A. For the monopsony equilibrium you must write down the marginal cost M 0;, rst. (b) (1 point) Solve for the competitive equilibrium in city B. (c) (2 points) Graph the monopsony equilibrium of city A and perfect competition equilibrium of city B on two graphs side by side ((1) (2 points) The federal government wants to set a federal minimum wage to maximize the number of people employed across both labor markets. What minimum wage (not place- based) yields the maximum level of overall employment (le1 + DB)? Provide both the specic minimum wage and the level of employment it yields