Use the information in the table below to calculate the value of the marginal product of labor (VMPĻ) for each level of employment in this perfectly competitive market and plot the labor demand curve. # of Workers (L) 1| 2 3 4 MPL 24 22 20 18 Price of Output (P) $5 $5 $5 $5 Provide your answer below: 130 120- 110 100 90 80 -70 60 50 2 workers (2,40) 4 workers (4,40) -40 1 worker (1,40) 3 workers (3,40) Labor Demand Cabor (L). Value of Marginal Product of Labor

Use the information in the table below to calculate the value of the marginal product of labor (VMPĻ) for each level of employment in this perfectly competitive market and plot the labor demand curve. # of Workers (L) 1| 2 3 4 MPL 24 22 20 18 Price of Output (P) $5 $5 $5 $5 Provide your answer below: 130 120- 110 100 90 80 -70 60 50 2 workers (2,40) 4 workers (4,40) -40 1 worker (1,40) 3 workers (3,40) Labor Demand Cabor (L). Value of Marginal Product of Labor

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 3 Refer to the data. If the price of output is $15, and the labor's wage is S225, the optimal number of labors (L") will be hired is Output (TPL) Labors 0. 1 40 90 126 150 165 170 A. 4 B. 5 C. 3 D.6 234 56
In Okennewick, 180 people are willing to spend an hour working as pizza makers for an hourly wage of $20. For each additional $5 that the wage increases above $20, an additional 45 people are willing to spend an hour working. For hourly wages of $20, $25, $30, $35, and $40, plot the daily labor supply curve for pizza makers on the following graph. WAGE (Dollars per hour) 50 45 40 35 25 20 15 10 5 0 0 45 + 90 135 180 225 270 315 LABOR (Number of workers) 360 405 450 Supply What is one explanation for why this labor supply curve is upward sloping? The opportunity cost of leisure increases as wages increase. Labor production functions exhibit diminishing marginal returns. Wages have to increase to accommodate union pressure. O Firms are willing to hire more pizza makers at a lower wage.
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In Houston, 180 people are willing to work an hour as hostesses if the wage is $10 per hour. For each additional $5 that the wage rises above $10, an additional 45 people are willing to work an hour. For wages of $10, $15, $20, $25, and $30 per hour, plot the daily labor supply curve for hostesses on the following graph. WAGE (Dollars per hour) 50 45 40 35 30 20 15 10 5 0 77°F Mostly sunny 0 45 90 315 225 270 135 180 LABOR (Number of workers) 360 405 450 -- Supply C O
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