The Employment of Librarians by Public Libraries Can Be Characterized

question 50

Essay

The employment of librarians by public libraries can be characterized as a monopsony. Suppose the demand for librarians is W = 30,000 - 125n, where W is the wage (as an annual salary), and n is the number of librarians hired. The supply of librarians is given by W = 1,000 + 75n.
i)If the public library takes advantage of its monopsony position, how many librarians will it hire? What wage will it pay?
ii)If, instead, the public library faced an infinite supply of librarians at the annual wage level of $10,000, how many librarians would it hire?

---

Definitions:

Mutual Gains

Benefits or advantages that are shared among parties in a transaction or negotiation, leading to a situation where all involved parties end up better off.

Insurance Industry

A sector of the financial services market that provides risk management through contractually agreed-upon financial protection against losses.

Capital at Risk

The amount of capital that could be lost in an investment due to risk factors.

Company's Liabilities

Financial obligations a company owes to outside parties, including debts, loans, and other forms of financial liabilities.