Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 15

Complete the following table for a single firm operating in labor market A and product market AA:

a. What, if anything, can one conclude about the degree of competition in labor market A and product market AA
b. What is the profit-maximizing level of employment Explain.
c. Does this profit-maximizing level of employment yield allocative efficiency Explain.