# The Sole Employer Of Output In Competitive Market Paper Homework Help

The Sole Employer Of Output In Competitive Market Paper Homework Help

The Sole Employer Of Output In Competitive Market Paper Homework Help

The sole employer in the town of Silverville is a silver mine, which sells its output in a competitive market. The mine’s production function is Q = 4N − 0.125N2, which implies that the marginal product of labour is MPN = 4 − 0.25N. Suppose also that the price of silver is P = 1 (recall that the monopsonist is a price taker in the goods 7 market). The residents of Silverville have a market labour supply curve defined as follows: NS = 4W − 2.

(a) If this firm behaved like a competitive firm, how many workers would it hire? What wage would it pay its workers? Illustrate your answer with a graph. Please show detailed solving of the equations.

The Sole Employer Of Output In Competitive Market Paper Homework Help

The sole employer in the town of Silverville is a silver mine, which sells its output in a competitive market. The mine’s production function is Q = 4N − 0.125N2, which implies that the marginal product of labour is MPN = 4 − 0.25N. Suppose also that the price of silver is P = 1 (recall that the monopsonist is a price taker in the goods 7 market). The residents of Silverville have a market labour supply curve defined as follows: NS = 4W − 2.

(a) If this firm behaved like a competitive firm, how many workers would it hire? What wage would it pay its workers? Illustrate your answer with a graph. Please show detailed solving of the equations.