The Happyland Hospital is a monopsonist employer of nurses in the small city of Happyland. The market supply function of nurses is S(W) = 0.25W - 30, where Wis the nurses' weekly wage. a. What is the hospital's marginal expenditure, ME? Instructions: Round quantities to the nearest whole number and all other answers to 2 decimal places as needed. b. If the hospital's marginal benefit is $4,000 per week no matter how many nurses it hires, what is the profit-maximizing number of nurses for the hospital to hire? ME = 120. ME = 8L - 120. ME = 8L + 120. ME = 8L. ME = 4L + 120. LA $ 1 c. What will the nurses' wage be? $ 16000 d. What is the deadweight loss? nurses.
The Happyland Hospital is a monopsonist employer of nurses in the small city of Happyland. The market supply function of nurses is S(W) = 0.25W - 30, where Wis the nurses' weekly wage. a. What is the hospital's marginal expenditure, ME? Instructions: Round quantities to the nearest whole number and all other answers to 2 decimal places as needed. b. If the hospital's marginal benefit is $4,000 per week no matter how many nurses it hires, what is the profit-maximizing number of nurses for the hospital to hire? ME = 120. ME = 8L - 120. ME = 8L + 120. ME = 8L. ME = 4L + 120. LA $ 1 c. What will the nurses' wage be? $ 16000 d. What is the deadweight loss? nurses.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The Happyland Hospital is a monopsonist employer of nurses in the small city of Happyland. The market supply function of nurses is
S(W) = 0.25W - 30,
where Wis the nurses' weekly wage.
a. What is the hospital's marginal expenditure, ME?
ⒸME = 120.
ⒸME = 8L - 120.
ME=8L + 120.
O ME = 8L.
$
ME = 4L + 120.
Instructions: Round quantities to the nearest whole number and all other answers to 2 decimal places as needed.
b. If the hospital's marginal benefit is $4,000 per week no matter how many nurses it hires, what is the profit-maximizing number of
nurses for the hospital to hire?
c. What will the nurses' wage be?
$ 16000
d. What is the deadweight loss?
nurses.
0
x
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