In your notes, complete this chart for a monopsonist mining company

Quantity of labor

Total labor costs

Wage rate

Marginal labor costs

Total Product

Price of product sold

Marginal Revenue Product

(miners) (wages) TLC/Q in TLC / in Q per hour in Total product* P

0 0 0 $1 $0 1 $10 $10 70 $1 2 $40 130 $1 3 $90 180 $1 4 $160 220 $1 5 $250 250 $1 6 $360 270 $1 7 $490 280 $1

Monopsonist mining company

Quantity of labor

Total labor costs

Wage rate

Marginal labor costs

Total Product

Price of product sold

Marginal Revenue Product

(miners) (wages) TLC/Q in TLC / in Q per hour in Total product* P

0 0 0 $0 0 $1 $0 1 $10 $10 $10 70 $1 $70 2 $40 $20 $30 130 $1 $60 3 $90 $30 $50 180 $1 $50 4 $160 $40 $70 220 $1 $40 5 $250 $50 $90 250 $1 $30 6 $360 $60 $110 270 $1 $20 7 $490 $70 $130 280 $1 $10

• Non- competitive firm

• Wage rate if competitive?

• DWL?

• Options for workers?

• Min wage• Unionize