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Unformatted text preview: 3. Acme Dynamite Company is the sole employer of labor in the town of Nitro, West Virginia. The number of hours that locals who are willing to work at the plant is H = 10 W , where $ W is the hourly wage rate. The amount of dynamite that the firm produces is Q = 100 E ! E 2 , where E is the amount of labor employed. Find the amount of labor that the monopsonist hires, when dynamite sells for $1.00 apiece, and the wage they offer. 4. The Macrofirm Corporation hires computer programmers on a competitive market, paying a wage of $10.00/hour. Their output " lines of code # is determined by the function Q = 100 E . The market will pay P = 1 ! Q 2000 for this product. Find the amount of labor that the monopolist employs....
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- Spring '08