Use the figure below to answer the following questions. Figure 17.3.1
-Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.Suppose the government passes a minimum wage law that prohibits anyone from hiring labour at less than $12.50 per hour.The monopsonist will hire

Question

Use the figure below to answer the following questions.  Figure 17.3.1
-Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.Suppose the government passes a minimum wage law that prohibits anyone from hiring labour at less than $12.50 per hour.The monopsonist will hire

Quizplus · Accepted Answer

The monopsonist will hire at the point where the marginal cost of labor curve intersects the labor supply curve. With the minimum wage law, the minimum cost of hiring labor is $12.50 per hour. Therefore, the intersection now occurs at a quantity of 62.5 hours, which is the amount of labor that the monopsonist will hire.

Use the Figure Below to Answer the Following Questions