On a separate sheet of paper, draw a labor supply and demand diagram for a single firm
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On a separate sheet of paper, draw a labor supply and demand diagram for a single firm in a competitive labor market. Remember, a competitive firm can hire as many workers as it likes at the market wage w* so supply of labor to the firm is horizontal. Label your axes, your supply and demand curves, and labor market equilibrium, w*, E*.
On a second graph, draw a labor supply and demand diagram for a non-discriminating monopsonist, where the monopsonist faces an upward sloping labor supply curve. Label the marginal cost of employment curve, and label profit maximizing wage, employment, and the value of marginal product of labor.
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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