A monopsony hire one worker at a wage of $6, two workers at a wage of...

A monopsony hire one worker at a wage of $6, two workers at a wage of $7 each, (by adding one worker each will cause a one dollar increase to the wage). If the marginal revenue product for all workers is $17, asking how much will the wage to pay?

Solutions

Expert Solution

Wages should be pay= $ 17

Marginal revenue product = Marginal physical Product × price

$ 17 = $ 1 × price

Price = $17÷ $ 1

Price = $ 17

Given : -

MRP = $ 17

MPP = $ 1

Rahul Sunny answered 1 year ago

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