The following is a labor supply functionwage per

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Reference no: EM13378037

The following is a labor supply function:

Wage per hour                  Quantity of Nurses Supplied

        $2                                         1

          4                                         2

          6                                         3

          8                                         4

         10                                        5

         12                                        6

Nurses are used by the clinic to provide clinic visits. Each visit brings $2 in avenue for the clinic. The relationship between nursing units and clinic visits is as follows:

Quantity of nurses                  Total clinic visits

        1                                            5

        2                                            9

        3                                           12

       4                                            14

       5                                             15

The provider is assumed to maximize profits. Determine the provider's equilibrium wage and how many nursing units it will hire. The provider is a monopsonist, which means it is the sole purchaser of labor in the market.

Reference no: EM13378037

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