Firm Gamma is a monopsonist hiring workers in some labor market. The graph below depicts the inverse labor supply curve w(L), the marginal expense on labor MEL, and the rm's marginal value of labor MVL. In this market, the rm will hire L: V workers and pay a wage W: V . This creates a deadweight loss DWL= v . Firm Gamma is the monopolist of a particular market. The graph below represents the demand, marginal revenue, and marginal cost. Gamma chooses quantity 0* that maximizes its prot. Firm Gamma charges a price p*= v . In this market, the Lerner Index of Market Power is L: v . In this market, the deadweight loss is DWL= v . Firm Gamma is the monopolist of a particular market. Gamma's cost function is c=3o2 The demand for Gamma's output is OD = 600 - 0.5p Gamma chooses quantity 0* that maximizes its prot. Firm Gamma produces Q*= v units of output and charges a price p*= Firm Gamma's prot is Prot= v . In this market, the Lerner Index of Market Power is L: v . In this market, the deadweight loss is DWL= v . (Hint: it is easier if you draw the graph) Which of the following is true at the output level where p=MC? O a. The monopolist is maximizing prot at the point where p=MC if the demand is eastic at this point 0 b. The monopolist is not maximizing prot and should increase output 0 c. The monopolist is always maximizing prot at the point where p=MC 0 d. The monopolist is maximizing prot at the point where p=MC if the demand is ineastic at this point C) e. The monopolist is not maximizing prot and should decrease output A monopolist has determined that at the current level of output the price elasticity of demand is -0.15. Which of the following statements is true? 0 The rm should decrease its output 0 The rm is choosing the correct amount of output 0 The rm should increase its output 0 The rm is maximizing prot if the quantity is Q=0.15 O The rm is maximizing prot if the price is p=0.15