WAGE (Dollars per worker)50045040035030025020015010050013LABOR (Number of workers)2The profit-maximizing quantity of labor at the market wage isMarket Wage Rateone workertwo workersthree workersfour workersDemandfive workers? 2. Graphing demand for labor and computing the optimal quantityConsider a company operating in a competitive market. The company sells units of output and receives a price of $30 per unit, and pays a dailymarket wage of $375 to each worker it employs.In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers.Marginal Product of Labor(Units of output)Value of the Marginal Product of Labor(Dollars)Labor(Number of workers)012345Output(Units of output)01631455664161514118On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to showthe wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.)Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value ofthe marginal product for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments willautomatically connect the points.

Marginal product is the change in the value of output due to unit change in the input factors. It…

WAGE (Dollars per worker) 500 450 400 350 300 250 200 150 100 50 0 0 3 LABOR (Number of workers) 2 The profit-maximizing quantity of labor at the market wage is one worker Market Wage Rate two workers three workers four workers Demand five workers 0 ?

WAGE (Dollars per worker) 500 450 400 350 300 250 200 150 100 50 0 0 3 LABOR (Number of workers) 2 The profit-maximizing quantity of labor at the market wage is one worker Market Wage Rate two workers three workers four workers Demand five workers 0 ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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