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A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage (marginal resource cost) of $270 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labour (MRP) at each quantity of workers. Labour Output Marginal Product of Labour Marginal Revenue Product of Labour (Dollars) (Number of workers) (Units of output) (Units of output) 0 1 2 3 4 5 0 20 39 57 72 84 AAAAA 20 19 18 15 12 3000 On the following graph, use the blue points (circle symbol) to plot the firm's labour demand curve. Then, use the orange line (square symbol) to show the wage rate. Line segments will automatically connect the points.

A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage (marginal resource cost) of $270 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labour (MRP) at each quantity of workers. Labour Output Marginal Product of Labour Marginal Revenue Product of Labour (Dollars) (Number of workers) (Units of output) (Units of output) 0 1 2 3 4 5 0 20 39 57 72 84 AAAAA 20 19 18 15 12 3000 On the following graph, use the blue points (circle symbol) to plot the firm's labour demand curve. Then, use the orange line (square symbol) to show the wage rate. Line segments will automatically connect the points.

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: The Markets For The Factor Of Production
Section: Chapter Questions
Problem 7PA
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A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage (marginal resource cost) of $270 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labour (MRP) at each quantity of workers. Labour Output Marginal Product of Labour (Number of workers) (Units of output) (Units of output) Marginal Revenue Product of Labour (Dollars) 0 1 2 3 4 5 0 20 39 57 72 84 20 19 18 15 12 On the following graph, use the blue points (circle symbol) to plot the firm's labour demand curve. Then, use the orange line (square symbol) to show the wage rate. Line segments will automatically connect the points.
Transcribed Image Text:A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage (marginal resource cost) of $270 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labour (MRP) at each quantity of workers. Labour Output Marginal Product of Labour (Number of workers) (Units of output) (Units of output) Marginal Revenue Product of Labour (Dollars) 0 1 2 3 4 5 0 20 39 57 72 84 20 19 18 15 12 On the following graph, use the blue points (circle symbol) to plot the firm's labour demand curve. Then, use the orange line (square symbol) to show the wage rate. Line segments will automatically connect the points.
On the following graph, use the blue points (circle symbol) to plot the firm's labour demand curve. Then, use the orange line (square symbol) to show the wage rate. Line segments will automatically connect the points. Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue product for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. ? WAGE (Dollars per worker) 400 380 320 280 240 200 160 120 80 40 0 0 1 2 3 LABOUR (Number of workers) The profit-maximizing quantity of labour at the market wage is 5 Demand Wage Rate (or Market Resource Cost)
Transcribed Image Text:On the following graph, use the blue points (circle symbol) to plot the firm's labour demand curve. Then, use the orange line (square symbol) to show the wage rate. Line segments will automatically connect the points. Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue product for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. ? WAGE (Dollars per worker) 400 380 320 280 240 200 160 120 80 40 0 0 1 2 3 LABOUR (Number of workers) The profit-maximizing quantity of labour at the market wage is 5 Demand Wage Rate (or Market Resource Cost)
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