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Consider a monopsonist firm. The wage is given by, W (L) = 8 + L (per worker). The firm produces output using labor only according
Consider a monopsonist firm. The wage is given by, W (L) = 8 + L (per worker). The firm produces output using labor only according to the production function Y = 10L. The firm is a price taker in the product market where the price is P = 2. Determine the firm's optimal labor demand if the firm wants to maximize its profit
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Introduction to Behavioral Economics
Authors: David R. Just
1st edition
0470596228, 978-0470596227
