Question

Suppose that the supply of NFL caliber punters (P) is given

by
ws = 100,000 + 3,000P,
where ws represents the wage and P is the number of punters.
Given the
supply, the marginal factor cost is MFC = 1

Answer 1

The question involves labor economics, marginal product, and market types such as perfectly competitive and monopsony markets. It focuses on how wages, employment, and marginal costs are determined and the effects on labor demand and societal benefits.

Step-by-step explanation:

The student's question pertains to labor economics and specifically deals with the concept of supply of labor, marginal factor cost (MFC), and marginal cost of labor in perfectly competitive and monopsony markets.

If the supply of NFL caliber punters is given by ws = 100,000 + 3,000P, where ws is the wage and P is the number of punters with a marginal factor cost of 1, this suggests that to hire one additional punter, the cost is consistent and not affected by the number of punters already employed.

This is in contrast to a monopsony market where the marginal cost of hiring additional labor is greater than the wage paid to each additional worker due to the need to increase wages for all workers.