2. Gaping demaniu ivi avui diu computing time optimai quantity Consider a company operating in a competitive market. The company sells units of output and receives a price of $20 per unit, and pays a daily market wage of $330 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor Output Marginal Product of Labor Value of the Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) 0 0 18 1 18 17 2 35 16 3 51 13 64 10 5 74 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for 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 (Dollars per worker) 400 360 320 280 240 200 160 120 80 40 0 1 2 3 LABOR (Number of workers) The profit-maximizing quantity of labor at the market wage is Demand Market Wage Rate (?)

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter4: Labor And Financial Markets
Section: Chapter Questions
Problem 13RQ: What is die price commonly called in the labor market?
Question
Please check the answer and add explanation properly at every steps and solve steps wise
2. Gaping demaniu ivi avui diu computing time optimai quantity
Consider a company operating in a competitive market. The company sells units of output and receives a price of $20 per unit, and pays a daily
market wage of $330 to each worker it employs.
In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers.
Labor
Output
Marginal Product of Labor Value of the Marginal Product of Labor
(Number of workers) (Units of output) (Units of output)
(Dollars)
0
0
18
1
18
17
2
35
16
3
51
13
64
10
5
74
On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show
the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.)
Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of
the marginal product for 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 (Dollars per worker)
400
360
320
280
240
200
160
120
80
40
0
1
2
3
LABOR (Number of workers)
The profit-maximizing quantity of labor at the market wage is
Demand
Market Wage Rate
(?)
Transcribed Image Text:2. Gaping demaniu ivi avui diu computing time optimai quantity Consider a company operating in a competitive market. The company sells units of output and receives a price of $20 per unit, and pays a daily market wage of $330 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor Output Marginal Product of Labor Value of the Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) 0 0 18 1 18 17 2 35 16 3 51 13 64 10 5 74 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for 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 (Dollars per worker) 400 360 320 280 240 200 160 120 80 40 0 1 2 3 LABOR (Number of workers) The profit-maximizing quantity of labor at the market wage is Demand Market Wage Rate (?)
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