Question

 Select the File Copy commande in Google to make a copy of the graph in your Google Drive Account, then folow the below instructions to complete the graph

 1. in the right hand diagram represent a monopony equilibrium outcome. 2. in the left hand diagram represent a bilateral monopoly outcome

QUESTION 1 

In monopsony the equilibrium wage rate is 

$800 $300 $0 $600 

QUESTION 2 

In the monopsonistic model the producer surplus is 

$0 $1,050 $1,250 $450

QUESTION 6 

In the monopsonistic model the deadweight loss is 

$400 $1,250 $0 $1,050

Answer 1

Answer 1 : Option B is correct. In monopsony equilibrium wage rate is $300 I.e the minimum wage rate that has been charged against it.It means that monopsony in the labor market resulted in the minimum wage which has been charged.

Answer 2: Option C is correct.

Producer surplus =0.5*(500-0)*(5)=$1250

Answer 3: Option A is correct. In monopsontic market, the dead weight loss is

Dead weight loss =-0.5*(700- 300)*(3-5) = $400