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1 what is the monopsonys marginal expenditure me curve 2

A monopsony buyer's demand curve is P = 100 - 0.6 Q The supply curve it faces is P = 20 + 0.5 Q

1) What is the monopsony's marginal expenditure (ME) curve?

2) What is the monopsony's marginal value (MV) curve?

3) Graph the ?rm's ME, AE and Demand curve.

4) What are monopsony's pro?t-maximizing quantity Qm and Price Pm?

5) What is monopsony's Markup?

6) Calculate Lerner Index of monopsony power.

7) Calculate price elasticity of supply at the monopsony solution.

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