This document contains a chart showing the costs and revenues for a monopsonist mining company as it hires additional miners from 0 to 7. As the company hires more miners, its total labor costs increase but at a decreasing rate, as shown in the marginal labor costs column. The wage rate also increases as more miners are hired due to the company's monopsony power in the labor market. The marginal revenue from additional miners decreases as more are hired, indicating the potential for deadweight loss from the company not hiring the competitive level of workers.

1. In your notes, complete this chart
for a monopsonist mining company
Quantity of Total labor Wage Marginal labor
labor
costs
rate
costs
(miners)
(wages)
0
1
2
3
4
5
6
7
TLC/Q
0
$10 $10
$40
$90
$160
$250
$360
$490
in TLC /
Total
Price of
Product product sold
in Q per hour
0
70
130
180
220
250
270
280
$1
$1
$1
$1
$1
$1
$1
$1
Marginal Revenue
Product
in Total
product* P
$0

2. Monopsonist mining company
Quantity of Total labor Wage Marginal labor
labor
costs
rate
costs
(miners)
(wages)
0
1
2
3
4
5
6
7
0
$10
$40
$90
$160
$250
$360
$490
TLC/Q
0
$10
$20
$30
$40
$50
$60
$70
in TLC /
Total
Price of
Marginal Revenue
Product product sold Product
in Total product*
in Q per hour
P
$0
$10
$30
$50
$70
$90
$110
$130
0
70
130
180
220
250
270
280
$1
$1
$1
$1
$1
$1
$1
$1
$0
$70
$60
$50
$40
$30
$20
$10

3. • Noncompetitive
firm
• Wage rate if
competitive?
• DWL?
• Options for
workers?
• Min wage
• Unionize