A single firm is the only employer in a labour market. The marginal revenue product, labour supply, and marginal factor cost curves that it faces are displayed in the diagram below. Use this information to answer the following questions. 1. How many units of labour will this firm employ in order to maximize it's economic profits? 2. what hourly wage rate will this firm pay it's workers? 3. What is the total amount of wage payments that this firm will make to its workers each hour? Wage Rate, Marginal Factor Cost, and Marginal Revenue Product per Hour ($) 28 20 13 10 0 T 1 1 I 1 1 1 1 MFC MRP 1000 1600 Quantity of Labour per Time Period S

A single firm is the only employer in a labour market. The marginal revenue product, labour supply, and marginal factor cost curves that it faces are displayed in the diagram below. Use this information to answer the following questions. 1. How many units of labour will this firm employ in order to maximize it's economic profits? 2. what hourly wage rate will this firm pay it's workers? 3. What is the total amount of wage payments that this firm will make to its workers each hour? Wage Rate, Marginal Factor Cost, and Marginal Revenue Product per Hour ($) 28 20 13 10 0 T 1 1 I 1 1 1 1 MFC MRP 1000 1600 Quantity of Labour per Time Period S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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