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Case #1: Monopsonist in input purchasing and Monopolist seller of product Equilibrium: MRP=MIC at Pt A Pricing off input supply curve gives QMM and PMM at B MIC Supply of Input A $ per unit of input Note: Use MR not output price (PY) due to being a monopolist (I don’t display the MVP curve) PMM B MRP=MR x MPP QMM 2 Amount of Input Purchased Page 161

Case #2: Perfect Competition in input purchasing and Monopoly seller Equilibrium is where MRP=Input price, PPCM No Marginal Input Cost curve → QPCM and PPCM Input price determined by input market (take input price as given $ per unit of input PPCM MRP=MR x MPP QMM 3 Amount of Input Purchased Page 161

Case #3: Monopsony in input purchasing and Perfectly Competitive seller Equilibrium: MVP=MIC at Pt. E Pricing off supply curve → QMPC and PMPC at Pt. D MIC E Supply of Input $ per unit of input PMPC D MVP=PY x MPP We use MVP instead of MRP curve given P.C. seller QMPC 4 Amount of Input Purchased Page 161

Case #4: Perfect Competition in both input purchasing and product sales Equilibrium: MVP=Input Price at Pt. F → QPC and PPC MVP=PY x MPP Input price determined by input market $ per unit of input PPC QPC 5 Amount of Input Purchased Page 161