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 21CTQ: Other than the demand for labor, what would be another example of a 'derived demand?
Related questions
Question
The table below presents the total revenue generated from each worker hired at Mary's Surf Shop.
Mary's Surf Shop and Revenues
| Labor (workers) | Total Revenue (dollars) | Marginal Revenue Product (dollars) |
| 0 | 0 | — |
| 1 | 40 | $ |
| 2 | 75 | |
| 3 | 105 | |
| 4 | 130 | |
| 5 | 150 | |
| 6 | 165 | |
| 7 | 175 |
Instructions: Enter your answers as a whole number.
a. Based on the information provided in the table, complete the "Marginal Revenue Product" column.
b. What is the demand for labor at Mary's Surf Shop? Use the data from the table to plot the demand for labor curve.
Instructions: Use the tool provided "D" to plot the line point by point, starting from 1 worker up to 7 workers (plot 7 points).
. What is the demand for labor if the wage rate is $15?
_______ worker(s)
Transcribed Image Text:MRP (dollars), wage rate
$50
$45
$40
$35
$30
$25
$20
$15
$10
$5
0
Mary's Demand for Labor
1
2
3
4
5
6
wage rate
7
8
9
Tools
D
O
O
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