You are the manager of a business that operates as a Monopolist in the output market, and it is a Monopsonist in the local labour market. The production function of the business is given by: Q = L As a Monopolist, the firm faces a market demand given by: P = - Q As a Monopsonist the firm faces a supply of labour given by the expression: w = L a) Calculate the equilibrium number of units of labour employed in short run. b) Briefly discuss the advantages for a firm of being a Monopolist in the output Market and a Monopsonist in the Labour Market.