btudent Name: Labor Market Comparisons Formulas, work, and analysis must be shown to earn points. Marginal Cost of Labor Supply of Labor Marginal Revenue Product 75 100 125 150 QUANTITY OF LABOR Premium Paper Products (PPP) is the only employer in the small town of Gandor. PPP is a monopsonist in the labor market and a perfect competitor in the paper market. When operating in the short run, labor is its only variable resource. The graph above demonstrates the labor market for PPP. 1. Looking at the graph, what kind of monopsonist is the firm? How can you tell? Using the information in the graph, what is the profit maximizing quantity of labor for PPP? Identify the wage rate PPP pays to hire the profit maximizing quantity of labor. Are all employees paid that rate or just the last employee hired? What wage would a competitive labor market dictate PPP pay its employees? How many laborers would be employed? If the government enacts a minimum wage of $17.00, what will be the impact on the quantity of labor hired by PPP