The happyland hospital is a monopsonist employer of nurses


The Happyland Hospital is a monopsonist employer of nurses in the small city of Happyland. The supply function of nurses is S(W) = 0.1W- 100, whereWis the nurses' weekly wage. What is the hospital's marginal expenditure, ME? If the hospital's marginal benefit is $2000 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?

Solution Preview :

Prepared by a verified Expert
Business Management: The happyland hospital is a monopsonist employer of nurses
Reference No:- TGS01537988

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)