**Graphing Demand for Labor and Computing the Optimal Quantity of Labor Demanded**A company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $330 per day for each worker it hires.In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers.| Labor (Number of workers) | Output (Units of output) | Marginal Product of Labor (Units of output) | Value of the Marginal Product of Labor (Dollars) ||---------------------------|--------------------------|---------------------------------------------|-----------------------------------------|| 0 | 0 | | || 1 | 20 | | || 2 | 39 | | || 3 | 57 | | || 4 | 72 | | || 5 | 84 | | |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.**Explanation of Graph (Not Provided in Image):**In the graph associated with this table, you will typically plot the number of workers on the X-axis and the Value of the Marginal Product of Labor (VMPL) on the Y-axis. The blue points show the firm’s labor demand curve, which usually slopes downward, indicating that as more workers are hired, the additional output produced by each additional worker decreases. The orange line represents the wage rate, which remains constant at $330 per day. The optimal quantity of labor is determined at the point where the VMPL curve intersects the wage rate line, indicating the number of workers the firm will hire to maximize profit. **Labor Market Equilibrium Analysis****Graph Explanation:**The provided graph illustrates the relationship between the wage rate and the quantity of labor demanded. - **X-Axis (Horizontal):** Represents the quantity of labor, measured in the number of workers.- **Y-Axis (Vertical):** Represents the wage, measured in dollars per worker.**Data Points:**- **Demand Curve:** This is indicated by a blue circular marker on the graph.- **Market Wage Rate:** This is represented by an orange square marker.**Key Observations:**- Each data point on the graph indicates the wage associated with a certain number of workers. - The 'Demand Curve' point suggests the wages that firms are willing to pay at different quantities of labor.- The 'Market Wage Rate' point reflects the established wage rate in the labor market.**Conclusion:**The profit-maximizing quantity of labor at the market wage is not specified numerically in the image. This graph is fundamental in understanding how the wage rate and demand for labor interact to determine employment levels in the labor market. It provides insights into how businesses balance between employing the number of workers and the wage rates they offer.

Give values: Price of each unit, P = $20 Market wage rate = $330 per day Use below formula to find…

2. Graphing demand for labor and computing the optimal quantity of labor demanded A company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $330 per day for each worker it hires. 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) 20 1. 20 19 39 18 3 57 15 4 72 12 84 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. AAAAA

2. Graphing demand for labor and computing the optimal quantity of labor demanded A company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $330 per day for each worker it hires. 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) 20 1. 20 19 39 18 3 57 15 4 72 12 84 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. AAAAA

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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