The graph below represents Lisena’s Landscaping Service’s demand for labor in the town of Forest Hills. The price of cutting a standard-sized residential lawn is $50 and the market wage rate for a worker is $200 per day. Answer the questions below. a. At the current market wage rate how many workers will the firm hire? b. Which economics principle can be used to explain why Lisena should NOT hire a fifth worker? c. What is the minimum number of lawns each worker should cut per day given wage rate of $200? Explain with a calculation.
Q4.
The graph below represents Lisena’s Landscaping Service’s demand for labor in the town of Forest Hills. The price of cutting a standard-sized residential lawn is $50 and the market wage rate for a worker is $200 per day. Answer the questions below.
a. At the current market wage rate how many workers will the firm hire?
b. Which economics principle can be used to explain why Lisena should NOT hire a fifth worker?
c. What is the minimum number of lawns each worker should cut per day given wage rate of $200? Explain with a calculation.
d. What happens to the demand for labor curve if the market price of cutting a lawn increases to $65? Explain your answer.
e. What happens to the demand for labor curve if the market wage rate increases from $200 per day to $250 per day? Explain your answer.
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