For a profit-maximizing monopsonist (only person hiring), they will hire labor until the MCE=MRPE. Consult the following table which I have started to fill out. What is the optimal number of workers for this firm to hire if their product sells for $15. Workers 0 1 2 3 4 5 Wage MCE 0 3 9 21 30 39 3 15 *** ... *** Product/hour Revenue $0 $75 $135 0 5 9 12 14 15 ... *** *** MPE MRPE N/A N/A 5 75 4 60 *** *** *** *** ... www
For a profit-maximizing monopsonist (only person hiring), they will hire labor until the MCE=MRPE. Consult the following table which I have started to fill out. What is the optimal number of workers for this firm to hire if their product sells for $15. Workers 0 1 2 3 4 5 Wage MCE 0 3 9 21 30 39 3 15 *** ... *** Product/hour Revenue $0 $75 $135 0 5 9 12 14 15 ... *** *** MPE MRPE N/A N/A 5 75 4 60 *** *** *** *** ... www
Chapter14: Wages, Unions, And Labor
Section: Chapter Questions
Problem 6QP
Related questions
Question
![3. For a profit-maximizing monopsonist (only person hiring), they will hire labor until
the MCE=MRPE. Consult the following table which I have started to fill out. What is
the optimal number of workers for this firm to hire if their product sells for $15.
+
Workers
0
12345
1
a.
b. 2
C. 3
d. 4
Wage
0
3
9
21
30
39
MCE
3
15
111
Product/hour Revenue MPE
N/A
5
0
SIIHE
5
9
12
14
15
$0
$75
$135
LER
4
T
110
F FOCUS
MRPE
N/A
75
60
40](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd47d2725-9ed4-4a07-8ea4-b309d33139a1%2F10b8dbc0-f4f5-4f41-a34a-e833fd61b8a5%2Ff0x4cc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. For a profit-maximizing monopsonist (only person hiring), they will hire labor until
the MCE=MRPE. Consult the following table which I have started to fill out. What is
the optimal number of workers for this firm to hire if their product sells for $15.
+
Workers
0
12345
1
a.
b. 2
C. 3
d. 4
Wage
0
3
9
21
30
39
MCE
3
15
111
Product/hour Revenue MPE
N/A
5
0
SIIHE
5
9
12
14
15
$0
$75
$135
LER
4
T
110
F FOCUS
MRPE
N/A
75
60
40
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