Please complete my microeconomics worksheet

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Deepika · Accepted Answer

Ans 1. The equilibrium quantity of labour the firm will employ (qe) = 24 people/year
Because the employer is a monopsonist and equilibrium is established where the marginal factor cost of labour (MFCL) is equal to its marginal revenue product.
At this equilibrium quantity of labour,
(a) MRPlabour = $1.2m/person/year
(b) MFClabour = $1.2m/person/year
Ans 2. The equilibrium wage paid by the firm (we) = $0.

Please complete my microeconomics worksheet

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