Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central Manufacturing Company is the only employer of machinists in the area. The graph below shows the market for machinists with the marginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve. A) Identify the profit-maximizing number of machinists. Explain using the labeling on the graph. (B) Identify the profit-maximizing wage rate that Central Manufacturing Company will pay its machinists. Explain using the labeling on the graph. (C) If the marginal product of machinists increases, what will happen to the quantity of output produced by Central Manufacturing Company? Explain. use the following graph
Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central Manufacturing Company is the only employer of machinists in the area. The graph below shows the market for machinists with the marginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve.
A) Identify the profit-maximizing number of machinists. Explain using the labeling on the graph.
(B) Identify the profit-maximizing wage rate that Central Manufacturing Company will pay its machinists. Explain using the labeling on the graph.
(C) If the marginal product of machinists increases, what will happen to the quantity of output produced by Central Manufacturing Company? Explain.
use the following graph
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