Draw a graph showing the profit-maximizing choice of labor for a monopsonistic firm. The firm experiences diminishing returns and is a price setter...

5. Draw a graph showing the profit-maximizing choice of labor for a monopsonistic firm. The firm experiences diminishing returns and is a price setter in the output market. Be sure to label all the axis and curves and explain what a monopsonist is and how the graph helps explain the behavior of monopsonists. (using complete sentences).

6. Show the utility maximizing choice of X and Y for a consumer whose preference set is strictly convex. Assume the consumer exhausts his/her income on the purchase of both goods. Be sure to label all the axis, lines, curves and points. Explain what the graph is saying (in complete sentences and paragraphs).