Suppose that one firm is the only employer of a certain labor service (i.e., the firm is a monopsonist) . Assume its Marginal Revenue Product of Labor (MRPL) is given by L = 11 - w and the labor supply is L = w.
What is the equilibrium wage rate (w) for this monopsonist firm?
A) 11
B) 5.5
C) 11/2
D) 6