Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage

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Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage rate required at each level of employment.

Table 14.13

Labor 1 2 3 4 5 6 Wage 1 3 5 7 8 10

a. What is the monopsonist’s marginal cost of labor at each level of employment?

b. If each unit of labor’s marginal revenue product is $13, what is the firm’s profit maximizing level of employment and wage?

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