In: Economics

The demand curve for labor facing a monopsonist is given as W=35-6L. The labor supply curve...

The demand curve for labor facing a monopsonist is given as W=35-6L. The labor supply curve is W=3+L, where W represents the hourly wage and L the number of person hours hired.

a) Write out the formula for the monopsonist's marginal labor cost curve?

b) What is the optimal quantity of labor hired by the monopsonist?

c) Determine the optimal wage paid by the monopsonist.

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