The employment of librarians by public libraries can be characterized as a monopsony. Suppose the demand for librarians is W = 30,000 - 125n, where W is the wage (as an annual salary), and n is the number of librarians hired. The supply of librarians is given by W = 1,000 + 75n.
i)If the public library takes advantage of its monopsony position, how many librarians will it hire? What wage will it pay?
ii)If, instead, the public library faced an infinite supply of librarians at the annual wage level of $10,000, how many librarians would it hire?

Question

Quizplus · Accepted Answer

The Answer of The employment of librarians by public libraries can be characterized as a monopsony. Suppose the demand for librarians is W = 30,000 - 125n, where W is the wage (as an annual salary), and n is the number of librarians hired. The supply of librarians is given by W = 1,000 + 75n.
i)If the public library takes advantage of its monopsony position, how many librarians will it hire? What wage will it pay?
ii)If, instead, the public library faced an infinite supply of librarians at the annual wage level of $10,000, how many librarians would it hire?

The Employment of Librarians by Public Libraries Can Be Characterized