1. The demand for labor Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table: Labor Input Total Output (Number of workers) (Pounds of strawberries) 0 0 1 16 2 30 3 42 4 52 5 60 Suppose that the market wage for strawberry pickers is $200 per worker per day, and the price of strawberries is $15 per pound. On the following graph, use the blue points (circle symbol) to plot Live Happley's labor demand curve when the output price is $15 per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue product of the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. WAGE RATE (Dollars per worker) 300 270 240 210 180 150 120 90 60 30 0 0 1 2 3 4 5 QUANTITY OF LABOR (Number of workers) Demand P = $15 Demand P = $13 (?)
1. The demand for labor Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table: Labor Input Total Output (Number of workers) (Pounds of strawberries) 0 0 1 16 2 30 3 42 4 52 5 60 Suppose that the market wage for strawberry pickers is $200 per worker per day, and the price of strawberries is $15 per pound. On the following graph, use the blue points (circle symbol) to plot Live Happley's labor demand curve when the output price is $15 per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue product of the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. WAGE RATE (Dollars per worker) 300 270 240 210 180 150 120 90 60 30 0 0 1 2 3 4 5 QUANTITY OF LABOR (Number of workers) Demand P = $15 Demand P = $13 (?)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1. The demand for labor
Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's
production schedule for strawberries is given in the following table:
Labor Input
Total Output
(Number of workers) (Pounds of strawberries)
0
0
1
16
2
30
3
42
4
52
5
60
Suppose that the market wage for strawberry pickers is $200 per worker per day, and the price of strawberries is $15 per pound.
On the following graph, use the blue points (circle symbol) to plot Live Happley's labor demand curve when the output price is $15 per pound.
Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue
product of the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically
connect the points.
WAGE RATE (Dollars per worker)
300
270
240
210
180
150
120
90
60
30
0
0
1
2
3
4
5
QUANTITY OF LABOR (Number of workers)
Demand P = $15
Demand P = $13
(?)
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