Suppose the Demand Faced by a Labor Monopsony Is W

question 49

Multiple Choice

Suppose the demand faced by a labor monopsony is W = 20,000 - 50l, where W is the annual wage and l is the number of workers hired. The labor supply is given by W = 5,000 + 75l. What is the deadweight loss associated with this monopsony, rounded to the nearest dollar?

• A) $105,502
• B) $120,356
• C) $126,563
• D) $130,000

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