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1. (12 marks) Consider a labour market where labour demand is given by w=240−2LD and labour...

1. Consider a labour market where labour demand is given by w=240−2LD and labour supply is given by w=30+3LS .

a. Calculate the competitive market equilibrium quantity of labour and wage.

b. Calculate the competitive market consumer surplus and producer surplus

c. Calculate the monopoly market equilibrium quantity of labour and wage.

d. Calculate the monopoly market consumer surplus and producer surplus.

e. Calculate the bilateral monopoly equilibrium quantity of labour.

f. Calculate the level of leverage, α , the players’ union must have to receive the competitive market wage calculated in part (a).

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