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VMP MRP Labor WageTP MP ATP 3 $6 200 AL MCL ATCL AL MP*P MP*MR $ $ 4 $7 260 60 $10 180 180 $ $ 5 $8 295 35 $105 12 105 $ $ $

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Answer #1

1) input market Monopsony

As at every employement level, MCL > wage

2) Output market Perfect Competition

Bcoz price of output is fixed

3) labor = 8

firm will hire, till MCL = MRPL

So two are Equalized at L= 8

4) Wages paid $ 11

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