Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 17P
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Derive labor demand curve by using market wage levels at 12$, 10$, 9$, 8$ as the market price for the product is 1$?

 

 

Solution
Marginal Product simply means
change in output resuting
the employment af an additional unit of Labon .
from
Change in output
c hainge in laboun
MP =
And value
of the Manginal Product means
marcket price × Marginal Product
Numben of output Manginal value af
value of Marginal
Workens
Employed
conits) Product Maaginal Product$)| Product )
(Marcket Price=2$
cunits) (Maket Prices 1$
1.
8.
1X8 = $8
2x8 = $ 16
2
22
14
1x14= $14
2x14 = $28
36
14
2×14 = $14
2x14=$28
56
20
1x 20 =$2O
2X20 =$40
70
14
1x14 = $14
2 X14 = $28
78
1x8=$8
2 X8 = $ 16
Transcribed Image Text:Solution Marginal Product simply means change in output resuting the employment af an additional unit of Labon . from Change in output c hainge in laboun MP = And value of the Manginal Product means marcket price × Marginal Product Numben of output Manginal value af value of Marginal Workens Employed conits) Product Maaginal Product$)| Product ) (Marcket Price=2$ cunits) (Maket Prices 1$ 1. 8. 1X8 = $8 2x8 = $ 16 2 22 14 1x14= $14 2x14 = $28 36 14 2×14 = $14 2x14=$28 56 20 1x 20 =$2O 2X20 =$40 70 14 1x14 = $14 2 X14 = $28 78 1x8=$8 2 X8 = $ 16
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