Suppose that output market is in a perfect competition with the
price of $10 per unit and input market is a monopsony with the
following information assuming that labor is the only input.
L: 1,2,3,4,5,6,7,8,9,10
MP: 20,18,16,14,12,10,8,6,4,2
W: 20,40,60,80,100,120,140,160,180,200
a. Fill in the missing values.
b. What are the optimal level of employment and the
corresponding profit for this firm?
c. Graphically explain the profit maximization behavior for this
firm.