A monopsony company has 5 employees each earning $20 an hour. The company decided to hire two a new employees at a rate of $25 an hour. The Marginal Labour Cost for employee number 6 is:     $25     $5     $20     $125     $150

Explain why monopsony gives rise to union development in labor markets.

A monopsony company has 10 employees each earning $25 an hour. The company decided to hire a new employee at a rate of $30 an hour. The Marginal Labour Cost for employee number 11 is     $5     $30     $80     $25     $55

Suppose the market supply is given by L=2.8w. Assume the product market is competitive and the product price is p=$12. Also suppose MPL=8.6-0.8L and that the firm has monopsony power. A.Graph the marginal revenue product of labour. The slope of this curve is equal to The vertical intercept of this curve is equal to .Write the formula for the inverse supply of labour and graph the supply curve. The slope of this supply curve is B. For this firm, the fully simplified formula for marginal cost is MC₁ = __ L (Enter the value which completes the formula. Do not enter the variable, it has been given) Illustrate this market graphically, including accurate numbers for slopes and intercepts. Write the condition which the monopsonist's optimal choice of labour must satisfy. This monopsonist will choose employment level . At this employment level, the firm will offer the wage $ , and the value marginal product of labour is $ The average cost of labour for this monopsonist is $ and the firm's…