... power (3)W0MVPLL1Employment£MRPLL3MCLL2For a monopsonist whoalso faces a downward-sloping demand curve for the product, MCLis set equal to MRPL to employ L4 workers.L4So ... (2)W0MVPLL1Employment£Under perfect competition,a firm sets MVPL = W0and employs L1 workersFacing a downward-sloping demand curve for its product, the firm sets MRPL = W0 and employs L3 workersMRPLL312.11The ... markets: labourDavid Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000Power Point presentation by Peter Smith12.5The demand for labour in the short runUnder...