A monopsonist faces a market labor supply curve w = 40 + 2L,where w is the wage rate and L is the number of workers employed.If the firm's labor demand curve is w = 200 - L,what is the optimal wage rate and quantity of labor employed?
A) w = 146.7 and L = 53.3.
B) w = 168 and L = 32.
C) w = 104 and L = 32.
D) w = 40 and L = 160.
E) w = 32 and L = 168.
Correct Answer:
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