Question: 1.) Explain how the competitive labor market functioned before the buyout of the independent farms. How was the wage rate and quantity of workers employed

1.) Explain how the competitive labor market functioned before the buyout of the independent farms. How was the wage rate and quantity of workers employed in the market determined?

2.) What will happen to the wage rate and employment of farm workers after the industry becomes monopsonistic? Illustrate your answer with an appropriate graph.

3.) What is MRC? Why is MRC a part of the monopsony graph and not a part of the perfectly competitive labor market graph?

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