Demand for ResourcesA small manufacturing company has the following daily relationship between labor and output:Units ofTotalLaborProduct1221335526165617If the firm sells into a perfectly competitive market and the equilibrium price is $3.25 per unit,compute the following:MarginalUnits ofMarginalProductRevenueLaborProduct12357How many workers will the firm hire is the market wage rate (includining benefits) is $30.00? Wł3How many workers will the firm hire is the market wage rate(includining benefits) is $20.00?4 If the equilibrium price per unit of output dencreases, what would you expectto happen to the number of workers hired?If the firm sells in a imperfectly competitive market such that price per unit starts at $4.50 per urdeclines by $0.10 per unit as more as sold,what do you think would happen to the number of labor units hired at $30.00 per unit?52.

Since you have provided multiple parts question, we will solve the first three subparts for you. If…

Demand for Resources A small manufacturing company has the following daily relationship between labor and output: Units of Total Labor Product 1 2 21 3 35 4 52 5 61 65 7 61 If the firm sells into a perfectly competitive market and the equilibrium price is $3.25 per unit, compute the following: 1 Marginal Units of Marginal Revenue Labor Product Product 1 2 3 4 5 7 2 How many workers will the firm hire is the market wage rate (includining benefits) is $30.00? Wt 3 How many workers will the firm hire is the market wage rate(includining benefits) is $20.00?

Demand for Resources A small manufacturing company has the following daily relationship between labor and output: Units of Total Labor Product 1 2 21 3 35 4 52 5 61 65 7 61 If the firm sells into a perfectly competitive market and the equilibrium price is $3.25 per unit, compute the following: 1 Marginal Units of Marginal Revenue Labor Product Product 1 2 3 4 5 7 2 How many workers will the firm hire is the market wage rate (includining benefits) is $30.00? Wt 3 How many workers will the firm hire is the market wage rate(includining benefits) is $20.00?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Labor Markets And Labor Unions

Section: Chapter Questions

Problem 1.1P

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