3. An employer in a purely competitive labor market compared to an employer in an imperfectly competitive labor market (monopsony)

In the table below the marginal revenue product of labor schedule for a particular type of labor is given in columns (1) and (2). The supply schedule for labor is given in columns (1) and (3).

Calculate the dollar values for (a) - (g) in the table.

(1) Units of labor	(2) MRPL	(3) Wage Rate	(4) Total labor cost	(5) Marginal labor cost (MLC)
0	**	**	**	**
1	$18	$ 6	a. $	d. $
2	16	7	b.	8
3	14	8	c.	e.
4	12	9	36	f.
5	10	10	50	g.
6	8	11	66	16

h. (Ch.16) A firm in a purely competitive labor market will hire additional workers until the

_________________________ equals _________________________.

i. (Ch.17) A profit-maximizing monopsonist will hire additional workers until the

_________________________ equals _________________________.

Use the above rules and the data in the table to answer questions j - n

j. If the firm hires its workers in a purely competitive labor market it will

pay a wage rate of $____________ and hire ____________ units of labor.

k. If the firm is a monopsonist it will

pay a wage rate of $____________ and hire ____________ units of labor.

l. Compared to a purely competitive labor market, a monopsonistic labor market

will result in a _______________ wage rate and _______________ workers hired.

m. A profit-maximizing firm hiring in purely competitive labor market pays a wage rate

that ______________________________ the worker's MRP.

n. A profit-maximizing monopsonist pays a wage rate

that ______________________________ the worker's MRP.