Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market Instructions: Enter your answers as a whole number. Marginal Product Marginal Revenue Units of Total Total Product Product Labor Price Revenue Product $2 1 17 2 2 31 2 3 43 2 4. 53 2 60 2 65 a. How many workers will the firm hire if the market wage rate is $27.95? worker(s) How many workers will the firm hire if the market wage rate is $19.95? worker(s) Explain why the firm will not hire a larger or smaller number of units of labor at each of these wage rates.
Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market Instructions: Enter your answers as a whole number. Marginal Product Marginal Revenue Units of Total Total Product Product Labor Price Revenue Product $2 1 17 2 2 31 2 3 43 2 4. 53 2 60 2 65 a. How many workers will the firm hire if the market wage rate is $27.95? worker(s) How many workers will the firm hire if the market wage rate is $19.95? worker(s) Explain why the firm will not hire a larger or smaller number of units of labor at each of these wage rates.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: The Supply Of And Demand For Productive Resources
Section: Chapter Questions
Problem 12CQ
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both images are for one question
Transcribed Image Text:b. Show this firm's labor demand curve graphically.
Instructions: Use the tool provided 'Demand' to plot the labor demand curve point by point (plot 6 points total).
35
Tools
30
Demand
25
10
1
2
4
7
Quantity of labor demanded
c. Now determine the firm's demand curve for labor, assuming that it is selling in an imperfectly competitive market and that, although it
can sell 17 units at $2.20 per unit, it must lower product price by 5 cents in order to sell the marginal product of each successive labor
unit.
Instructions: For marginal product, enter your answers as a whole number. For all other answers, round your answers to 2 decimal
places.
Imperfectly Competitive Market
Total
Revenue
Marginal
Revenue
Units of
Labor
Total
Marginal
Product
Product
Product
Price
Product
1
17
2
31
3
43
4
53
60
6
65
Wage rate
15
20
Transcribed Image Text:Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market.
Instructions: Enter your answers as a whole number.
Units of
Labor
Marginal
Revenue
Product
Total
Marginal
Product
Product
Total
Revenue
Product
Price
$2
1
17
31
2
3
43
2
4
53
2
60
2
6
65
2
a. How many workers will the firm hire if the market wage rate is $27.95?
worker(s)
How many workers will the firm hire if the market wage rate is $19.95?
worker(s)
Explain why the firm will not hire a larger or smaller number of units of labor at each of these wage rates.
O The firm subtracts the resource price from the MRP in determining its profit-maximizing level of resource employment.
O The firm equates resource price and MRP in determining its profit-maximizing level of resource employment.
O The firm divides the resource price by the MRP in determining its profit-maximizing level of resource employment.
O The firm adds the resource price to the MRP in determining its profit-maximizing level of resource employment.
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