Assume that a large firm buys all the farms in northern Florida and becomes the only employer of farm workers in the northern half of the state.

1. Assume that a large firm buys all the farms in northern Florida and becomes the only employer of farm workers in the northern half of the state.

a. Explain how the competitive labor market functioned before the buyout of the independent firms. How was the wage rate and quantity of workers employed in the market determined?

b. What will happen to the wage rate and employment of farm workers after the industry becomes monopolistic? Illustrate your answer with an appropriate graph.

c. What is the MRC? Why is MRC a part of the monopsony graph and not a part of the perfectly competitive labor market graph?

please include graphs