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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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