A company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $330 per day for each worker it hires. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor (Number of workers) Output (Units of output) Marginal Product of Labor (Units of output) Value of the Marginal Product of Labor (Dollars) 0 1 2 3 4 5 0 20 39 57 72 84 ÄÄÄÄÄ 20 19 18 15 12 On 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 show the 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 of the marginal product for the first worker should be plotted with horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points.
A company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $330 per day for each worker it hires. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor (Number of workers) Output (Units of output) Marginal Product of Labor (Units of output) Value of the Marginal Product of Labor (Dollars) 0 1 2 3 4 5 0 20 39 57 72 84 ÄÄÄÄÄ 20 19 18 15 12 On 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 show the 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 of the marginal product for the first worker should be plotted with horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter2: The One Lesson Of Business
Section: Chapter Questions
Problem 2.4IP
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Transcribed Image Text:A company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $330 per day for each
worker it hires.
In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers.
Labor
(Number of workers)
Output
(Units of output)
Marginal Product of Labor
(Units of output)
Value of the Marginal Product of Labor
(Dollars)
0
1
77°F
Mostly sunny
2
3
4
5
0
20
39
57
72
84
AAAAA
20
19
18
15
12
On 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 show
the 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 of
the 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 will
automatically connect the points.
Transcribed Image Text:automatically connect the points.
WAGE (Dollars per worker)
400
360
320
280
240
200
160
120
80
40
0
0
77°F
Mostly sunny
2
LABOR (Number of workers)
4
The profit-maximizing quantity of labor at the market wage is
5
H
Demand
O
Market Wage Rate
M
с
O
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