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Given a monopsony's production function Q = 45L - 0.25L 2; Market wage function w = 10 + 3L; and price of the Q in
Given a monopsony's production function
Q = 45L - 0.25L2;
Market wage function
w = 10 + 3L;
and price of the Q in the product market
P = 10;
Calculatethe extent of monopsonistic exploitation if the firm is profit-maximizing. Using these values,please graph and discuss the result.
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