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The following example is taken from your reference textbook, Goolsbee Microeconomics - Figure It Out 13.2. Richland Uranium Mining operates a mine in a remote
The following example is taken from your reference textbook, Goolsbee Microeconomics - Figure It Out 13.2. Richland Uranium Mining operates a mine in a remote area. Because of its location, it has monopsony power in the labor market. Its value of marginal product of employment (marginal revenue product of labor) is VMPE = 800 - 10L, where L is the total number of miners it hires and MRPL is measured in thousands of dollars per miner. The labor supply curve of local miners is W = 10L - 100, where W is the wage. The marginal cost of employment curve (marginal expenditure curve) is MCE = 20L - 100. What quantity of labor (employment level or number of miners) does Richland Uranium Mining want to hire
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