Problem
The Happy land Hospital is a monopsonist employer of nurses in the small city of Happy land. The supply function of nurses is S(W) = 0.1W - 100, where W is the nurses' weekly wage. What is the hospital's marginal expenditure, ME? If the hospital's marginal benefit is $2,000 per week no matter how many nurses it hires, what is the profit-maximizing number of nurses for the hospital to hire? What will the nurses' wage be? What is the deadweight loss?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.