Question: Given the input supply functions of a pure monopsonist, ps = g + Gs where G is a symmetric positive semidefinite matrix, and given the following primal problem:
min TCMO = s' Gs
subject to A'y ≥ c
g + 2Gs ≥ y
s ≥ 0, y ≥ 0
(a) Derive the dual problem and give a complete economic interpretation (use the symbols x and s for the dual variables of the primal constraints).
(b) Now, interpret the primal in economic terms.