Suppose that the supply of NFL caliber punters (P) is given by ws = 100,000 + 3,000P, where ws represents the wage and P is the number of punters. Given the supply, the marginal factor cost is MFC = 100,000 + 6,000P. The marginal revenue product of punters can be expressed as MRPP = 460,000 − 3,000P.

a. What are the competitive wage and employment level?

b. What are the wage and employment under monopsony?

c. What is the extent ofmonopsonistic exploitation in thismarket?

d. What is the social welfare loss of monopsony?

e. Illustrate all of the above in a graph.