The local community contains many residents with PhDs who would like to teach as adjunct professors at the local university, which is the main employer of people with PhDs. The university’s demand curve or marginal value curve for adjunct professors is written: W = 12,000 – 15Q, where W refers to the employer’s
a.
How many teachers would be hired and at what wage per class if the market for adjunct professors were
Wage paid per semester course taught W = ________
Quantity of adjunct professors hired Q = ___________
b.
Now determine how many adjunct professors would be hired if the university acted as a monopsonist? What would the payment be per semester class taught? Show your work.
Wage paid per semester course taught W = _________
Quantity of adjunct professors hired Q = __________
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