Graph values can be estimated to the nearest 5 units when necessary. A, The equation (in simplified form) for the labour supply curve for this firm is L= . Assuming perfect competition in the product market, the equation (in simplified form) for the firm's value marginal product of labour is MRPL= . The equation (in simplified form) for the firm's marginal cost of labour is MCL= . If the firm's marginal product of labour is 10 -0.1L and the product market is perfectly competitive, then the product price must be $ B. This monopsonist will hire LM= . This will give the firm total profit $ and the workers' surplus area is equal to $ C. If the union were to impose a wage of $ labour units and pay workers the wage WM=$ The firm's surplus area is equal to $ . This monopsonist creates vacancies. the firm will not employ any workers. For what range of wages will wage-raising increase the employment level? Decrease the employment level? For what range of wages will wage-raising lead to higher employment levels than the monopsony outcome? Which wages would be worse for workers than accepting the monopsony outcome? W 100 MCL 110 90 90 60 80 70 60 60 50 50 40 40 30 30 20 20 10 Ls 0 10 20 30 40 50 60 70 80 MRPL 90 90 100 110 L