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2. A certain monopsonistic employer demands labor according to the marginal revenue product function MRP = 3780 - 8Q, faces marginal labor costs that vary
2. A certain monopsonistic employer demands labor according to the marginal revenue product function MRP = 3780 - 8Q, faces marginal labor costs that vary according to the function MCL = 20QL, and pays weekly wages according to the function W = 10QL, where QL is the quantity of labor per week. a. How many units of labor will this employer use in a typical week, to maximize profit? [Hint: See Chapter 5.) b. What wage will this employer pay, if it uses the profit-maximizing quantity of labor? c. Calculate the marginal revenue product of labor at the profit-maximizing employment level. Is there evidence of monopsonistic exploitation here? Explain. d. If this employer were a competitive buyer of labor, how many units of labor would it employ, to maximize profit
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