Question

Q (trees cut per day) 0 40 Wage ($/day) L (# of lumberjacks 30 0 34 1 382 423 46 4 505 54 6 71 89 103 114 120 Pointy Stone Lumber Company is the sole employer of lumberjacks in the area. The table above provides information about the supply of lumberjacks and the total quantity they can produce per day. Trees sell for $6 per tree. a. What wage rate does Pointy Stone Lumber Company pay? Wage rate = $1 b. How many workers does the company hire? La Lumberjacks c. What is the marginal revenue product at the quantity of labor employed? MRPL = $ ||

Answer 1

4 Тc MC MP MKP оро бо — — Что 39 39 Чо 240 1 2 7. 16 42 3/ 18 7 с 12 4 So18 | 08 1941 от 18 1989 to try - Го 66 с. губ 120 329 746 3G и

A) The monoposony or single employer equilibrium is at ,

MC=MRP

So equilibrium wage is 50 , where MC=MRP

b) Firm employ 5 unit of lumberjacks

C) MRP at L=5 is 66