Question

1.     Assuming Farm Apple Sdn Bhd hire the labour to pick apple. Using the information below, answer the following questions:

 

Quantity of   Labour	Units of Output
0	0
1	16
2	21
3	25
4	31
5	36
6	40

 

a)     Assume a perfectly competitive firm, Farm Apple Sdn Bhd spent at a fixed rate of MYR 800 for wages, and each of their apple (output) sells for MYR 20, calculate the marginal product of labour, value of the marginal product of labour, and marginal profit. Using your answer, explain how many labours should and should not the firm demand. 

 

b)     Explain two (2) factors that would shift the demand for labour for most firms and how it will affect the equilibrium wages and value of marginal product of labour.