The Table Below Shows Some Data for the Labour Market

question 74

Essay

The table below shows some data for the labour market in the country of Maulani. $\begin{array} { c c c c } \hline \text { Wage Rate } & \begin{array} { c } \text { Quantity } \\\text { Demanded 1 }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Supplied }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Demanded 2 }\end{array} \\\hline \$ 10 & 300 & 240 & 330 \\12 & 280 & 250 & 310 \\14 & 260 & 260 & 290 \\16 & 240 & 270 & 270 \\18 & 220 & 280 & 250 \\20 & 200 & 300 & 230 \\\hline\end{array}$ a) Given Quantity Demand 1 and assuming that the Krinkles is operating in a perfectly competitive labour market, what will it have to pay for labour?
b) If, instead, Krinkles was a monopsonist, would it hire more or less labour, and would the wage rate be higher or lower?
Now assume that the quantity of labour demanded increases as shown in the last column on the left.
c) Given the same conditions as in a) above, what is your answer to a) now?