A pure monopsony buyer of a resource has a marginal value curve for the resource expressed as:
MV = 100 - 0.4Q.
Its marginal and average expenditure functions are:
ME = 20 + 0.023Q
AE = S = 20 - 0.011Q.
Compute the deadweight loss that results when the firm acts to maximize profit (that is, takes advantage of its monopsony power). Also, calculate the coefficient of monopsony power that this firm possesses and the elasticity of supply of the resource.

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The Answer of A pure monopsony buyer of a resource has a marginal value curve for the resource expressed as:
MV = 100 - 0.4Q.
Its marginal and average expenditure functions are:
ME = 20 + 0.023Q
AE = S = 20 - 0.011Q.
Compute the deadweight loss that results when the firm acts to maximize profit (that is, takes advantage of its monopsony power). Also, calculate the coefficient of monopsony power that this firm possesses and the elasticity of supply of the resource.

A Pure Monopsony Buyer of a Resource Has a Marginal