answer the questions below

FIGURE 10.4 Wage Rate and Employment Determination Under Monopsony Wage rate MLC Wa WI X D(MRP) LI La Number of workers 1. In the above drawing, W2=$25/hour, Wi =$20/hour, and L2= 100,000 and L1 = 80,000. a. What is a monopsony? 2 Marks b. If this labour market was a competitive labour market (many buyers, many sellers) what would be the equilibrium wage rate, and the equilibrium level of employment? 3 Marks c. If the market was a monopsony what would be the wage rate, and level of employment? 3 Marks d. Summarize what happens to wage rates and employment levels when a competitive labour market gradually becomes a monopsony labour marker. 2 Marks