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Labor Markets and Monopsonies: There are 30 baseball teams In the league and each has a monopoly in the product market Demand curve in Product

Labor Markets and Monopsonies:

There are 30 baseball teams In the league and each has a monopoly in the product market

Demand curve in Product market for a baseball team: P(Q) = 200 -30Q

Production function for each team: Q(l) = 2(l) (l is players they will hire)

Aggregate supply curve for players: w(L) = 22 + L

  1. If the market is perfectly competitive, how do I find the equilibrium wage, equilibrium amount of talent hired, talent EACH team will hire, team surplus, and player surplus?
  2. If the league is now a MONOPSONIST how do I find the equilibrium wage, equilibrium amount of talent hired, talent EACH team will hire, team surplus, and player surplus?

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