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Monopsony Assignment

Monopsony Assignment. Add to the graph on the next slide a minimum wage less than W1. Describe what will happen in this market from this type of minimum wage. Hint: Here you probably do not want to be brief. Give a full analysis .

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Monopsony Assignment

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  1. Monopsony Assignment Add to the graph on the next slide a minimum wage less than W1. Describe what will happen in this market from this type of minimum wage. Hint: Here you probably do not want to be brief. Give a full analysis. Hint 2: think about a competitive market for output and consider a wage floor below equilibrium.

  2. $ MLC S Wc W1 MRP = D L L1 Lc

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