Homework Help: economics (micro)

Posted by Tom on Monday, May 3, 2010 at 8:22pm.

2. In the table below, assume a monopsonist has the marginal-revenue-product schedule for a particular type of labor given in columns 1 and 2 and that the supply schedule for labor is that given in columns 1 and 3.
(1) (2) (3) (4) (5)
Number of MRP Wage Total Marginal
labor units of labor rate labor cost labor cost
0
1 $18 $ 6 $_____ $_____
2 16 7 _____ _____
3 14 8 _____ _____
4 12 9 _____ _____
5 10 10 _____ _____
6 8 11 _____ _____
7 6 12 _____ _____
8 4 13 _____ _____

(a) Compute the firm’s total labor costs at each level of employment and the marginal labor cost of each unit of labor, and enter these figures in columns 4 and 5. 8 points
(b) How many units of labor will the firm hire? What will be the wage rate? I point

(c) If this firm hired labor in a competitive labor market, what would be the wage rate and number of workers hired? 1 point

I would be so thankful for any help possible!

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