A monopsonist uses only labor (L)to produce her output (Q)which she sells in a competitive market at the fixed price P=3. The production function is Q=15L²- 0.2L³and the labor supply function is w=144+23.4L.
a)Determine the profit- maximizing values of L, Q, and w.
b)Explain why you have chosen the answer that maximizes profit instead of one that minimizes it.

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The Answer of A monopsonist uses only labor (L)to produce her output (Q)which she sells in a competitive market at the fixed price P=3. The production function is Q=15L²- 0.2L³and the labor supply function is w=144+23.4L. a)Determine the profit- maximizing values of L, Q, and w. b)Explain why you have chosen the answer that maximizes profit instead of one that minimizes it.

A Monopsonist Uses Only Labor (L)to Produce Her Output (Q)which