1. In the following table, assume a monopsonist has the marginal-revenue-product
ID: 1186512 • Letter: 1
Question
1. In the following table, assume a monopsonist has the marginal-revenue-product schedule for a particular type of labor given in columns 1 and 2 and that the supply schedule for labor is that given in columns 1 and 3.
(1)
Number of labor units
(2)
MRP of labor
(3)
Wage rate
(4)
Total labor cost
(5)
Marginal labor cost
0
$ 2
$_____
1
$36
4
_____
$_____
2
32
6
_____
_____
3
28
8
_____
_____
4
24
10
_____
_____
5
20
12
_____
_____
6
16
14
_____
_____
7
12
16
_____
_____
8
8
18
_____
_____
a. Compute the firm
(1)
Number of labor units
(2)
MRP of labor
(3)
Wage rate
(4)
Total labor cost
(5)
Marginal labor cost
0
$ 2
$_____
1
$36
4
_____
$_____
2
32
6
_____
_____
3
28
8
_____
_____
4
24
10
_____
_____
5
20
12
_____
_____
6
16
14
_____
_____
7
12
16
_____
_____
8
8
18
_____
_____
Explanation / Answer
1. In the following table, assume a monopsonist has the marginal-revenue-product schedule for a particular type of labor given in columns 1 and 2 and that the supply schedule for labor is that given in columns 1 and 3.
a. Compute the firm
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