The table below shows how many workers are pared to work at various hourly wages in the

Question:

The table below shows how many workers are pared to work at various hourly wages in the for industry. It also shows the workers' marginal rev product (MRP).

a. On a diagram, draw the supply of labour curve and the demand for labour curve.
b. What is the equilibrium wage and level of employment if the labour market is competitive?
c. Now suppose there is only a single buyer fu labour€”a monopsonist. Compute the marginal cost of labour for each level of employment and fill in the table. (Recall that the MC of labour is the change in labour cost divided by the change in employment. The first two rows have been completed for you.)
d. What wage and level of employment would the monopsonist choose? Explain.