This question deals with the application of microeconomic theory to labor markets.
a) What is the difference between the perfect competitior's value of the marginal product of labor and the imperfect competitor's marginal revuenue product of labor curve? Explain and show graphically.
b) If a monopolist bought all the firms in a formerly perfectly competitive industry and acquired the legal right to exclude entry, how would the quantitiy of labor employed be afected? Explain and show graphically
c) Why is an individual's labor supply curve possibly backward bending, but the market labor supply curve is upwatd sloping? Explain and show graphically.