Dream Home Builders, a construction company, wants to make a decision on the quantity of labor to be hired. It has already employed 10 workers. Suppose the wage rate for construction workers is $30 per hour. The value of the marginal product of labor of hiring 11, 12, 13, 14, and 15 workers is $70, $62, $48, $27 and $14 per hour respectively.

 

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When Droam Home Builders employs 11 workers, it can increase profits by workers. Dream Home Builders oplimizes by employing a total ofworkers. W the market wage changes to $27, Dream Home Builders would the number of workers employed to workers. The curve depicting the value of the marginal product of labor is also the labor curve. When Droam Home Builders employs 11 workers, it can increase profits by workers. Dream Home Builders oplimizes by employing a total ofworkers. W the market wage changes to $27, Dream Home Builders would the number of workers employed to workers. The curve depicting the value of the marginal product of labor is also the labor curve.

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