Monopsony: (The following will use the equations used in the prior set of questions and are:...
Monopsony:
(The following will use the equations used in the prior set of questions and are: demand Qd=245,000 - 300W, where Qd is quantity demanded and W is hourly wage rate and Qs= -17,000+1200W, where Qs is quantity supplied)
If the inverse supply curve is given as W=a+bQs, the marginal resource cost is: MRC = a+2bQs.
a) with a monopsony, how many people will be hired?
b) calculate the wage rate.
c) if the company could hire as many employees as it wanted with this wage rate, how many people would it hire?
d) what is the "shortage" of employees? (difference in answer c and answer a.)
Homework Answers
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Monopsony:
(The following will use the equations used in the prior set of
questions and are:...
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