The labour supply function faced by a business operating under monopsony in the labour market and in perfect competition in the goods and services market is as follows Ls = 10+0,5L. The production function of the firm is Q = L2-16L. What is the wage level that the firm will pay to the workers when the firm sells its goods for 5 dollar in the market?

The labour supply function faced by a business operating under monopsony in the labour market and in perfect competition in the goods and services market is as follows Ls = 10+0,5L. The production function of the firm is Q = L2-16L. What is the wage level that the firm will pay to the workers when the firm sells its goods for 5 dollar in the market?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.3P

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The labour supply function faced by a business operating under monopsony in the labour market and in perfect competition in the goods and services market is as follows Ls = 10+0,5L. The production function of the firm is Q = L2-16L. What is the wage level that the firm will pay to the workers when the firm sells its goods for 5 dollar in the market?
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