Suppose the Labor Supply function for potential players is as follows 1 worker = $5,000 2 workers = $10,000 3 workers = $15,000 4 workers = $20,000 5 workers = $25,000 6 workers = $30,000 7 workers = $35,000 Suppose the Marginal Revenue Product (Labor Demand) is as follows. First worker = $52,000 --Second worker $48,000--Third Worker = $44,000 Fourth Worker = $40,000-- Fifth Worker = $36,000 --Sixth Worker = $32,000--Seventh Worker = $28,000 %3D %3D How many workers would a profit- maximizing monopsonist hire?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Question
Suppose the Labor Supply function for
potential players is as follows
1 worker = $5,000
2 workers = $10,000
3 workers = $15,000
4 workers = $20,000
%3D
5 workers = $25,000
%3D
6 workers = $30,000
7 workers = $35,000
Suppose the Marginal Revenue Product
(Labor Demand) is as follows.
First worker = $52,000 --Second worker
$48,000--Third Worker = $44,000 Fourth
Worker = $40,000-- Fifth Worker = $36,000
--Sixth Worker = $32,000--Seventh Worker
= $28,000
%3D
%3D
How many workers would a profit-
maximizing monopsonist hire?
Transcribed Image Text:Suppose the Labor Supply function for potential players is as follows 1 worker = $5,000 2 workers = $10,000 3 workers = $15,000 4 workers = $20,000 %3D 5 workers = $25,000 %3D 6 workers = $30,000 7 workers = $35,000 Suppose the Marginal Revenue Product (Labor Demand) is as follows. First worker = $52,000 --Second worker $48,000--Third Worker = $44,000 Fourth Worker = $40,000-- Fifth Worker = $36,000 --Sixth Worker = $32,000--Seventh Worker = $28,000 %3D %3D How many workers would a profit- maximizing monopsonist hire?
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