Use the figure below to answer the following questions. Figure 17.3.2
-Refer to Figure 17.3.2.This figure illustrates a monopsonist in the labour market.The profit-maximizing wage rate is ________ and the quantity of labour hired is ________.

Question

Use the figure below to answer the following questions.  Figure 17.3.2
-Refer to Figure 17.3.2.This figure illustrates a monopsonist in the labour market.The profit-maximizing wage rate is ________ and the quantity of labour hired is ________.

Quizplus · Accepted Answer

In a monopsony labor market, the profit-maximizing wage rate and quantity of labor hired are determined where the marginal expense of labor (MEL) curve intersects the marginal revenue product of labor (MRPL) curve. Without seeing Figure 17.3.2, we can't identify the exact intersection point, but based on the question's structure, the correct answer is the one that aligns with the principles of monopsony. Typically, the monopsonist will hire fewer workers and pay a lower wage compared to a competitive market outcome.

Use the Figure Below to Answer the Following Questions