Tilda grows Brussels sprouts, and is a monopsony buyer of labor in her small town. The labor supply she faces is given in the following table, and shown in the accompanying graph.

a. Calculate Tilda's total expenditure on labor if she wants to hire one worker, and fill in the appropriate cell in the table. Then, figure out how much Tilda would have to spend to hire two workers, three workers, and so on.
b. Calculate Tilda's marginal expenditure on labor for the first worker, the second worker, and so on. Fill in the marginal expenditure column in the table.
c. Carefully graph the values from the Marginal Expenditure on Labor column in the graph provided.
d. Describe how the marginal expenditure curve you graphed behaves, relative to the labor supply curve.

Transcribed Image Text:

Wages ($/hour)i ii s20---- 14-T 10-- 1 2 3 4 5 Quantity of labor (hours) Total Expenditure Marginal Expenditure Wage (/hr) $10 S11 $12 $13 S14 Quantity of Labor on Labor on Labor