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Walmart employs the majority of people in small rural town. It's demand for labor is given by QD=100-2P. The supply of labor is given by Qs=3P. If the labor market functioned as a competitive market, the wage rate (the price of labor) would be 20 60 v people would be employed, and the producer surplus would be 600

Walmart employs the majority of people in small rural town. It's demand for labor is given by QD=100-2P. The supply of labor is given by Qs=3P. If the labor market functioned as a competitive market, the wage rate (the price of labor) would be 20 60 v people would be employed, and the producer surplus would be 600

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Hello, can you assist me with all parts of this question and show how you did the work, please? Thank you

Walmart employs the majority of people in small rural town. It's demand for labor is given by QD=100-2P. The supply of labor is given by Qs=3P. If the labor market functioned as a competitive market, the wage rate (the price of labor) would be 20 60 v people would be employed, and the producer surplus would be 600 Because Walmart faces little competition for workers, it decides to offer the wage that maximizes consumer surplus (the monopsonist price). This wage is 14.3 which results in 42.9 v being employed. The producer surplus is now 306.7 v. Note: don't worry if the number of workers is not an integer.
Transcribed Image Text:Walmart employs the majority of people in small rural town. It's demand for labor is given by QD=100-2P. The supply of labor is given by Qs=3P. If the labor market functioned as a competitive market, the wage rate (the price of labor) would be 20 60 v people would be employed, and the producer surplus would be 600 Because Walmart faces little competition for workers, it decides to offer the wage that maximizes consumer surplus (the monopsonist price). This wage is 14.3 which results in 42.9 v being employed. The producer surplus is now 306.7 v. Note: don't worry if the number of workers is not an integer.
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QD=100-2P

QS= 3P

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