Explain the sole purchaser of labor in the market

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The following is a labor supply function:
Wage per hour Quantity of Nurse Supplied
$2 1
4 2
6 3
8 4
10 5
12 6
Nurses are used by the clinic to provide clinic visits. Each visit brings in $2 in revenue for the clinic. The relationship between nursing units and clinic visits is as follows:

Quantity of Nurses Total Clinic Visits
1 5
2 9
3 12
4 14
5 15
The provider is assumed to maximize profits. Determine the provider's equilibrium wage and how many nursing units it will hire. The provider is a monopsonist, which means it is the sole purchaser of labor in the market.

Reference no: EM13235545

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