2.MR and MPL are given in the following table. The output is produced under a monopoly market structure while the labour market is perfectly competitive.

a. Complete the table below.

output MR L MPL TR Price MRPL MRPL Regulated

1 20 1 5

2 18 2 4

3 16 3 3

4 14 4 2

5 12 5 1

b. If the wage rate is $54, how many workers will the unregulated monopolist hire? Why?

c. Suppose the government regulates this monopolist and sets the price at $16 for each unit. What is the MRP for each worker, and how many workers will the regulated monopolist hire? (Wage rate is still $54.)