Candice's' Cupcakes is a new cupcake delivery company in Gainesville, Florida. The firm hires local college...

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Candice's' Cupcakes is a new cupcake delivery company in Gainesville, Florida. The firm hires local college students to sell cupcakes door-to-door. Each of these "Sales Associates" sells cupcakes, which increases Candice's Cupcakes' total revenue, but must be paid an hourly wage. The graph below depicts Candice's Cupcakes' demand for labor curve when the retail price of a cupcake is $2.50. Hourly Wage $35 $30 Hourly Wage $25 $20 $15 $10 $5 $30 $25 Part (i): Suppose that the retail price of a cupcake is $2.50. What is the marginal product of the 4th Sales Associate? $20 Part (ii): Suppose that the retail price of a cupcake is $2.50. What is the marginal product of the 10th Sales Associate? Part (iv): Suppose that the retail price of a cupcake increases to $5.00, but that the sales associates' marginal products are not affected. What is the marginal revenue product of the 10th Sales Associate? Part (iii): Suppose that the retail price of a cupcake increases to $5.00, but that the sales associates' marginal products are not affected. Construct the new demand for labor curve. $35 $15 $10 2 4 $5 6 H 14 10 12 Number of Sales Associates 2 4 8 6 8 10 12 14 Number of Sales Associates Part (v): Complete this sentence: As the price of the good being produced increases, the demand for labor (decreases; increases). If the wage is unchanged, (fewer; more) workers will be hired. Candice's' Cupcakes is a new cupcake delivery company in Gainesville, Florida. The firm hires local college students to sell cupcakes door-to-door. Each of these "Sales Associates" sells cupcakes, which increases Candice's Cupcakes' total revenue, but must be paid an hourly wage. The graph below depicts Candice's Cupcakes' demand for labor curve when the retail price of a cupcake is $2.50. Hourly Wage $35 $30 Hourly Wage $25 $20 $15 $10 $5 $30 $25 Part (i): Suppose that the retail price of a cupcake is $2.50. What is the marginal product of the 4th Sales Associate? $20 Part (ii): Suppose that the retail price of a cupcake is $2.50. What is the marginal product of the 10th Sales Associate? Part (iv): Suppose that the retail price of a cupcake increases to $5.00, but that the sales associates' marginal products are not affected. What is the marginal revenue product of the 10th Sales Associate? Part (iii): Suppose that the retail price of a cupcake increases to $5.00, but that the sales associates' marginal products are not affected. Construct the new demand for labor curve. $35 $15 $10 2 4 $5 6 H 14 10 12 Number of Sales Associates 2 4 8 6 8 10 12 14 Number of Sales Associates Part (v): Complete this sentence: As the price of the good being produced increases, the demand for labor (decreases; increases). If the wage is unchanged, (fewer; more) workers will be hired.