On a separate sheet of paper, draw a labor supply and demand diagram for a competitive labor market. The equation for labor supply is w = 25+5E, and labor demand is VMP = 100-10E. Label your axes, your supply and demand (VMPe) curves, and solve for labor market equilibrium, w, E. On a second graph, draw a labor supply and demand (VMPe) diagram for a non- discriminating monopsonist, where the monopsonist faces an upward sloping labor supply curve, with the same formulas for labor supply and demand as the competitive graph, but the marginal cost of hiring workers equals MCe = 20 + 10E. Label the marginal cost of employment curve, and solve for and label profit maximizing wage, employment, and the value of marginal product of labor. Does a non- discriminating monopsonist pay more or less than the competitive wage? Explain why. What happens to employer, worker, and social surplus in the presence of a monopsony? Label any dead weight On a separate sheet of paper, draw a labor supply and demand diagram for a competitive labor market. The equation for labor supply is w = 25+5E, and labor demand is VMP = 100-10E. Label your axes, your supply and demand (VMPe) curves, and solve for labor market equilibrium, w, E. On a second graph, draw a labor supply and demand (VMPe) diagram for a non- discriminating monopsonist, where the monopsonist faces an upward sloping labor supply curve, with the same formulas for labor supply and demand as the competitive graph, but the marginal cost of hiring workers equals MCe = 20 + 10E. Label the marginal cost of employment curve, and solve for and label profit maximizing wage, employment, and the value of marginal product of labor. Does a non- discriminating monopsonist pay more or less than the competitive wage? Explain why. What happens to employer, worker, and social surplus in the presence of a monopsony? Label any dead weight