Suppose we have the following information from a construction company for the activity of laying bricks:

a. Fill in the missing values.

b. Based on the information in the table, is the company a price taker or a price maker?

c. Draw a graph like Figure 16.1 to show the company’s demand for labor. Indicate the profit-maximizing quantity of labor on your graph.

Transcribed Image Text:

Number of Workers (L) 10 11 12 13 14 15 16 Output of Bricks Per Day (Q) 3,000 3,300 3,600 3,900 4,200 4,500 4,800 Marginal Product of Labor in Product Bricks Per Price Day (MP) (P) $0.5 0.5 0.5 0.5 0.5 0.5 0.5 Marginal Revenue Wage Product Wage of Labor Per Day Per Day (W) $150 150 150 150 150 150 150 Additional Profit from Hiring One More Worker Per Day