How would you solve this problem The labor market for NBA players is perfectly c

Question

How would you solve this problem

The labor market for NBA players is perfectly competitive. The Labor Supply curve is Q = .20 + 3w. The Marginal Expenditure curve is ME = (2Q+20)/3. The Labor Demand curve is Q = 125 -2w. The Marginal Revenue curve is MR = (125 - 2Q)2. Both the players and the owners do not have market power. What is the perfectly competitive market equilibrium wage and numbers of players employed. The players still do not have market power but the owners have organized into a league and act as a single unit when hiring players. If the owners act as a monopsonist what is the wage and number of players employed. The players now have market power and have organized into a union and the owners are completely unorganized and each one is acting on their own without market power. If the union acts as a monopoly what is the wage and number of players employed. Given the answers to parts b and c, what is the size of the possible contract zone if both the owners and the players have market power. What is the dead weight loss associated with the owners' monopsony in part b. What is the dead weight loss associated with the players' monopoly in part c.

Explanation / Answer

a. -20+3w = 125-2w

w = 29 , number of players = 67

b. (2Q+20)/3 = (125-2Q)/2

Q = 32.5 and wages = 30

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