Hiring profit maximizing level of labour if the industry is a monopolist
1. The supply curve for labour is SL = 100W, where W is the marketplace wage. The marginal revenue product curve for the industry is DL = -50W + 450.
(a) If the industry is a monopolist, describe how many workers will it hire in order to maximize profits? Illustrate what will be the wage?
(b) If the supply of labour is monopolized, describe how many workers are supplied in order to maximize the wage bill? Illustrate what is which wage?