Assume a coal mine in Siberia is acting as a monopsony in its labor market and monopoly in its product market and labor cost is their only significant cost. Assume one unit of coal is 250 tons per year. The number of workers needed per 250 tons of coal is 1000. And 1000 workers make up one unit of labor, because workers are fired and hired as multiples of 1000, the company increases and decreases its production level as multiples of 250. Assume when company produces 250 tons of coal per year, price of coal is 500000 dollar per ton and wage of a worker is 10000. (Remember 1000 workers are employed per 250 tons of coal produced). For each additional 250 tons produced price of coal fall by 20000$, for each additional 1000 workers hired, the wage increase by 5000 $.

a) Construct a table that shows marginal revenue, total revenue and average revenue for every 250 ton, between the production levels 250 ton and 2500 ton of steel.

b) Construct a table that shows marginal cost, total cost and average cost for every 250 ton, between the production levels 250 ton and 2500 ton of steel.

c) What will be the optimum number of workers employed in that case?

d) Draw the graph of a monopsony case. Show the competitive market equilibrium and the optimum point for the monopsony on your graph. (Note in reality the company cannot go to the exact equilibrium point because of hiring and production constraints.)

e) Calculate the exploitation for each production level for each production level between 250 ton and 2500 ton. What is the exploitation at the optimum point of the monopsony.