A monopsonist's demand curve for labor is given byw= 22 3L, where w is the hourly wage rate andLis the number of person-hours hired.

a.If the monopsonist's supply (AFC) curve is given byw= 1L, which gives rise to a marginal factor cost curve of MFC = 2L, how many units of labor will he employ and what wage will he pay?

Instructions:Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest penny (2 decimal places).

Labor:

Wage: $

b. How would your answers to part (a) be different if the monopsonist were confronted with a minimum wage bill requiring him to pay at least $7/hr?

Instructions:Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest whole number.

Labor:

Wage: $

c. How would your answers to parts (a) and (b) be different if the employer in question were not a monopsonist but a perfect competitor in the market for labor?

Instructions:Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest penny (2 decimal places).

Without a minimum wage

Labor:

Wage: $

With a minimum wage

Instructions:Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest whole number.

Labor:

Wage: $