In a coal-mining company town, one employer is the sole buyer of labor services. The labor supply curve is given by Q_L =-700 + 100 w. The marginal revenue product of those workers is (w=) MRP_L = 19 - 0.02L.

a.Invert the labor supply curve and find the firm's marginal expenditure curve. Graph both labor supply and marginal expenditure.

b.What quantity of labor will the local coal baron hire? What wage will it pay?

c.What would the quantity of labor hired and the wage be if there were lots of mining firms competing for workers?

d.Calculate the deadweight loss of monopsony power.