Question 3 Monopsony and Minimum Wages: Consider the case of a monopsonist who is the only employer in an isolated town in West Virginia. There are 100 individuals who live in the town, and each has a utility function given by u(c, l) = 0.251n(l) + 0.75ln(c) were I is their leisure and c is their consumption. As usual, the price of consumption is normalized to 1 and each individual has a nonlabour income of 10. Each person's time endowment is 16. The price of the monopsonist's good is 20. The monopsonist only uses labor in production, and has the production technology: fUcall =1 where l is is the total number of labour hours worked. (a): Find the wage, labour demanded and output of the monopsonist. (b): How much labour will the monopsonist demand with a minimum wage of $5? (c): How about a minimum wage of $25