Suppose that the market for nurses is characterized as a monopsony. There is a single large hospital. Solving for the equilibrium wage and quantity is a multi step procedure. First you will need the...

Suppose that the market for nurses is characterized as a monopsony. There is a single large hospital. Solving for the equilibrium wage and quantity is a multi step procedure. First you will need the marginal resource cost (MRC) curve. This curve gives the marginal cost of hiring an additional nurse (in cost per hour). Since attracting an additional nurse requires raising the wage rate for all nurses, this cost is above the wage rate required for that additional nurse. If the inverse supply curve is given as W=a +bQs the marginal resource cost is: MRC = a +2bQs. With a single buyer there isn't a demand curve, but what we would think of the demand curve is the marginal value curve. In this case, it gives the marginal value product of nurses. Hence you can replace W in the inverse demand function with MVP.

To find the quantity of nurses hired, set MRC=MVP and solve for Q.

With a momopsony how many nurses are hired?

what is the wage rate?( use the inverse supply curve not he MRC or demand curve)

If the hospital could hire as many nurses as it wanted with the wage rate you found, how many nurses would be hired? (use demand curve)