Consider the graph at right for a monopsonistic labor market. The competitive wa
ID: 1203754 • Letter: C
Question
Consider the graph at right for a monopsonistic labor market. The competitive wage is $750.00, and the competitive labor use is 250.00 workers. In a monopsonistic labor market, the amount of labor used will be 166.7 workers and the wage will be $ (round your answer to the nearest penny). (Round all of the following answers to the nearest dollar.) In a monopsonistic labor market, consumer surplus will be $| |; the monopsonistic labor market producer surplus will be area $, and the monopsonistic labor market producer deadweight loss will be area $, and the monospsonistci labor market producer deadweight loss will be $Explanation / Answer
in monopsonistic labor market, wage will be $833.33 in monopsonistic labor market, consumer surplus will be = 1/2*166.7*(1000-833.3) ] = $13889.44
in monopsonistic labor market, producer surplus will be = 1/2* 166.7* (833.33- 500) = $27783.0555. and monopsonistic labour market producer deadweight loss is = 1/2* (833.33-750)* (250-166.7) = $3470.6945.