Given the input supply functions of a pure monopsonist


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.

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Engineering Mathematics: Given the input supply functions of a pure monopsonist
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