Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
What is the equilibrium wage rate?
what is the equilibrium level of employment?

Transcribed Image Text:VIRP TO alaw ihe marginai fevenue produci curve (piol o poirnis tolal). To eam Tuii credil ior trIIs grapri, you must piOL all required
points for each curve.
40
38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6.
4
Tools
MRC
MRP
1
2
3
4 5
6.
7
Quantity of labor
Wage rate (dollars)

Transcribed Image Text:Complete the following labor supply table for a firm hiring labor competitively:
Units of Labor
Marginal Resource
(Labor) Cost
Wage Rate
Total Labor Cost
Marginal
Revenue Product
$14
0.
1
14
14
14
$38
14
28
14
28
14
42
14
24
14
56
14
20
14
70
14
14
6.
14
84
14
10
a. Show graphically the labor supply and marginal resource (labor) cost curves for this firm.
Instructions: (1) Use the tool provided 'MRC' to draw the marginal resource cost curve (plot 6 points total). (2) Use the tool provided
'MRP' to draw the marginal revenue product curve (plot 6 points total). To earn full credit for this graph, you must plot all required
points for each curve.
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