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c. Suppose the rm is a monopsonist in the input market while the output market is competitive and P = 1 is given. The rm
c. Suppose the rm is a monopsonist in the input market while the output market is competitive and P = 1 is given. The rm has its production function f (L) = 2pL and faces an upward-sloping labor supply curve w(L) = 12 L. Find the prot-maximizing (w; L) and the e cient (w; L)
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Microeconomics
Authors: Robert S. Pindyck, Daniel L. Rubinfeld
7th edition
8131725995, 8131725993, 978-8131725993
