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Assume the (inverse) demand is characterized by w = 20 - L. The (inverse supply of labor is characterized by w = 5 +0.25L. If

Assume the (inverse) demand is characterized by w = 20 - L. The (inverse supply of labor is characterized by w = 5 +0.25L. If the labor market is competitive, then solve for the equilibrium wage rate and quantity of labor employed. Now, assume a monopsonist is the only employer of labor in this area. What wage rate will the monoposoist offer? Find the quantity of labor.

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