Pawnee is considered to be a "company town" for Sweetums Candy Conglomerate (Hint: what does it mean for the competitiveness of the labor market in a company town?). Its demand curve for labor is:
L = 480 – 40MVPL
where L is the number of workers hired and MVPL is their marginal value product. Sweetums faces a labor supply curve of:
L = 80w
where w is the wage.
Find the equation for Sweetums' marginal factor cost, assuming Sweetums takes advantage of its monopsony