Exhibit 28-8

-Refer to Exhibit 28-8.If the monopsonist could perfectly discriminate by paying each worker a different wage rate,the number of workers employed would be

Question

Exhibit 28-8
 
-Refer to Exhibit 28-8.If the monopsonist could perfectly discriminate by paying each worker a different wage rate,the number of workers employed would be

Quizplus · Accepted Answer

If the monopsonist could perfectly discriminate by paying each worker a different wage rate, they would hire workers until the point where the marginal cost of hiring an additional worker equals the wage rate for that worker. This would result in hiring workers up to where the supply curve intersects each individual demand curve, and the total number of workers employed would be Q₅. Therefore, the correct answer is E.

Exhibit 28-8 -Refer to Exhibit 28-8.If the Monopsonist Could Perfectly Discriminate by Could