Data in the following table refer to the purchase of a resource by a pure monopsonist. Let the resource be labor time L, measured in hundreds of hours per day.
Units of Labor Marginal Average Marginal Revenue
Input Expenditure Expenditure Product
L ME AE MRP
1 10 10 16
2 12 11 15
3 14 12 14
4 16 13 13
5 18 14 12
6 20 15 11
7 22 16 10
8 24 17 9
a. Determine the profit maximizing purchase rate of labor for the monopsonist.
b. If this market were not monopsonistic but competitive, what would be the purchase rate of labor time?
c. Determine the equilibrium wage rate in both the monopsonistic and competitive markets?
Question 2
A lawsuit seeking compensation for damage from pollution
A) will ruin any chances the Coase theorem has of working to avoid the situation in the first place.
B) is a substitute for bargaining, but an inefficient one.
C) is a substitute for bargaining, and it can lead to the efficient solution.
D) is preferable to switching the property rights between the parties.
E) is how the Coase theorem was meant to work in the first place.
Bioinformatics tools at the BAR (Bio-Array Resource).
Cross-sectional data showing that the amount of effort spent on personal health care increases with
Umberto Boccioni, Table + Bottle + House.
Example of the Table of Drugs and Chemicals.
This table shows the growth of a crowd at a rally over a 3 h period.
Table