How much labour should it employ and at what wage

Reference no: EM131481783

Question: (Leave this question if you have not yet covered factor supply theory.) In a factor market for labour, a monopsonistic buyer faces the marginal revenue product schedule MRPL = 244 - 2L, the supply of labour schedule w = 20 + 0.4L, and the marginal cost of labour schedule MCL = 20 + 0.8L

How much labour should it employ, and at what wage, if MRPL must equal MCL in order to maximize profit?

Reference no: EM131481783

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