The National Softball League (NSL) is the sole purchaser of elite softball playing talent. The players in the league belong to the National Softball Players Association (NSPA) with 100% membership. The NSL and the NSPA, thus, are a bilateral monopoly in professional softball. Suppose the league statistician has determined the following equations: Labor Supply: W - L/50 Labor Demand: MRPL- 10 - L/100 Where: L = the quantity of labor (talent units) supplied/demanded. w = monthly wage, in thousands. MRPL = the marginal revenue product of labor. To find the MEL we take the derivative of the total expenditure on labor function (TEL). Total expenditure on labor is given by: TEL = W.L = L/50-L = L2/50 Thus, marginal expenditure on labor is, MEL = dTEL/dL - L/25 Note generally: Competitive market: set supply = Demand > Lc. wc Monopsony League: set MEL - MRPL > Lm, Wm Monopoly Union: - set MRL - Supply > Lu, Wu a. Determine the equilibrium w and L if the market was competitive