Question

please help me with the graph and how many workers. thank youu

1. Graphing demand for labour and computing the optimal quantity 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 (Number of workers) Output (Units of output) 0 Marginal Product of Labour (Units of output) Marginal Revenue Product of Labour (Dollars) 0 17 17 16 2 33 340 320 300 240 15 3 48 12 4 60 9 180 5 69 On the following graph, use the biue points (circle symbol) to plot the firm's labour demand curve. Then, use the orange Nne (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.

Answer 1

Demand $ --Market Wage rate $ Wage ($ per worker) $400.00 $360.00 $320.00 $280.00 $240.00 $200.00 $160.00 $120.00 $80.00 $40.00 $- 2 3 5 6 4 Labor (Number of workers) Data for graph: A 14 Labor 15 No of workers 16 0 17 1 18 2 19 3 B C Demand Market Wage rate $ $ $ 270.00 340.00 $ 270.00 320.00 270.00 300.00 $ 270.00 240.00 $ 270.00 180.00 $ 270.00 $ $ $ $ $ $ $ 4 20 21 22 5

Answers: The profit maximising quantity of labor at market wage rate is 4 workers A B D Marginal revenue product of labor E Market Wage 1 rate Labor No of workers Output unit of output 2 $ 3 a C Marginal Product of labor unit of output b 0 17 16 15 o 1 4 5 6 7 0 17 33 48 $ $ $ $ $ $ 2 $ (GIVEN) 270.00 270.00 270.00 270.00 270.00 270.00 =b*MR $ 340.00 $ 320.00 $ 300.00 $ 240.00 $ 180.00 $ 3 8 4 60 12 9 5 69 9 12 P=MC=MR 13 MR $ 20.00

Formulas in excel A E 1 Labor 2 No of workers 3 40 a B С D Marginal Output Product of Marginal revenue product of labor unit of output unit of output $ b =b*MR 0 =B4 =C4*B$13 17 =B5-B4 =C5*B$13 33 =B6-B5 =C6*B$13 48 =B7-36 =C7*B$13 60 =B8-B7 =C8*B$13 69 =B9-B8 =C9*B$13 Market Wage rate $ (GIVEN) 270 270 5 1 6 2 73 8 4 270 270 270 270 9 5 12 P=MC=MR 13 MR 14 20