EXHIBIT C Panel (a) Panel (b) MFC MC P E S Factor price, marginal revenue product, marginal factor cost Price, marginal revenue, Pa marginal cost. MR MRP FQ, FQo Quantity of product per period Quantity of product per period EXHIBIT D: Minimum Wage and Monopsony MFC S 50 Wage, marginal revenue product, 35 Minimum wage 30 and marginal factor cost 20 MRP 142 L3 Quantity of labor per period15. [Exhibit C] Panel (a) represents represents in a factor market. A) monopsony; monopoly.r E] duopoly; monopoly C] monopoly; rr'ronopsaovnj.r D) monopoly; monopolistic competition in a product market, and Panel [b] 16. [Exhibit D: Minimum Wage and Monopsony} In the absence of a minimmn wage, the monopson}r rm in the exhibit would maximize prots by hiring units of labor per periodI and setting the wage at A) Ll; $35 E] Ll; $2!) C] L2; $30 D) L3; $53 1?. [Exhibit D: Minimum Wage and Monopsony) If a $31} minimum wage is imposed, the monopsony rm in the exhibit would maximize prots by hiring units of labor per period at the wage A) Ll; $35 E] L2; $2 C] L2; $30 D) L3; $39 18. (Exhibit D: Minimum Wage and Monopsony) With or without a minimum wage in its factor market, a profit-maximizing monopsony firm should always hire the quantity of a factor where: A) the wage rate is at a minimum. B) the wage rate equals marginal factor cost. C) MFC = MRP. D) All of the above are true, since they all state essentially the same rule