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L MP W
1 20 20
2 18 40
3 16 60
4 14 80
5 12 100
6 10 120
7 8 140
8 6 160
9 4 180
10 2 200
a. What are the employment level and the wage rate for this industry if this industry is in a perfectly competitive input market?
b. Suppose that the minimum wage of $140 per unit labor is imposed. What is the employment level for this industry
(1) if this industry is under a perfectly competitive input market,
(2) if this industry is in a monopsony?
Assume that the marketplace for engagement rings is in equilibrium.
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