Monopsonist employer of nurses

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Reference no: EM131097155

Suppose that Guelph Hospital is a monopsonist employer of nurses. The market supply of nurses is Q^s = 0.01 W - 600, where W is the annual wage of a nurse, in dollars, and Q is the number of people who would accept employment as a nurse. Suppose that the demand for nurses is Q^d = 900 - 0.01 W. What is the hospital's profit-maximizing number of nurses and wage? Is there a deadweight loss and if so what is it? What would the number of nurses hired and the wage be if Confederation Hospital acted like a price taker?

Reference no: EM131097155

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