Now imagine that the CEO retreat is a monopsony employer for laborers (to make lemonade)in the geographic market surrounding the retreat. Suppose the firm faces an inverse supplycurve of labor of w(L) = 2000 + 500L.

A. What is the marginal expenditure curve for the CEO retreat?

Now assume the monopsony has an inverse demand curve for labor of w(L) = 6500 500L. B. What are the equilibrium wage and labor quantity?

C. Show the equilibrium wage and equilibrium labor quantity graphically. In- clude the inverse demand curve and the firm's supply and marginal expenditure

curves. D. What are consumer surplus, producer surplus, and deadweight loss at the equilibrium?