Question
Assume a monopsonist's demand curve is for labor w=12-2L where w is the hourly wage and L is the number of person-hours hired. Also, assume
Assume a monopsonist's demand curve is for labor w=12-2L where w is the hourly wage and L is the number of person-hours hired. Also, assume the monopsonist's supply (AFC) curve is w= 4+3L
a) How many units of labor would monopsonists hire?
b) What wage would monopsonists pay?
c) What wage would be paid if instead the market was competitive?
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International Business
Authors: Michael Geringer, Jeanne M. McNett, Michael S Minor, Donald A Ball
1st edition
78029376, 78029370, 1259317226, 978-1259317224
