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In your notes, complete this chart for a monopsonist mining company
Quantity of labor
Total labor costs
Wage rate
Marginal labor costs
Total Product
Price of product sold
Marginal Revenue Product
(miners) (wages) TLC/Q in TLC / in Q per hour in Total product* P
0 0 0 $1 $0 1 $10 $10 70 $1 2 $40 130 $1 3 $90 180 $1 4 $160 220 $1 5 $250 250 $1 6 $360 270 $1 7 $490 280 $1
Monopsonist mining company
Quantity of labor
Total labor costs
Wage rate
Marginal labor costs
Total Product
Price of product sold
Marginal Revenue Product
(miners) (wages) TLC/Q in TLC / in Q per hour in Total product* P
0 0 0 $0 0 $1 $0 1 $10 $10 $10 70 $1 $70 2 $40 $20 $30 130 $1 $60 3 $90 $30 $50 180 $1 $50 4 $160 $40 $70 220 $1 $40 5 $250 $50 $90 250 $1 $30 6 $360 $60 $110 270 $1 $20 7 $490 $70 $130 280 $1 $10
• Non- competitive firm
• Wage rate if competitive?
• DWL?
• Options for workers?
• Min wage• Unionize
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