A pure monopsony buyer of a resource pays a price P of $200.00 per unit purchased. The elasticity of supply ES of the resource is 4.0. What is the marginal value of the resource, MV, to the firm? Under what conditions would this firm have more monopsony power?

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The Answer of A pure monopsony buyer of a resource pays a price P of $200.00 per unit purchased. The elasticity of supply ES of the resource is 4.0. What is the marginal value of the resource, MV, to the firm? Under what conditions would this firm have more monopsony power?

A Pure Monopsony Buyer of a Resource Pays a Price