1. Given the data below, reproduce and fill in the table in your answer, graph the results on appropriate graphs. Assume firm has only labor as a resource/input.

L	Wage Bill	Total Resource Cost	MRC	MRP
100	$4000			9000
200	$4000			8000
300	$4000			7000
400	$4000			6000
500	$4000			5000
600	$4000			4000
700	$4000			3000

b)   This labor market is imperfectly competitive. True, False, explain in detail. Why does the Marginal Resource (Labor) Cost curve have the shape it does?

c)   How many workers will this firm hire? Why?

d)   Explain what would happen to the quantity of workers the firm would hire if the demand for the good these workers produce were to fall. What would happen to the wage? Draw (and label as such) a rough new labor demand curve on your graph from answer 1a). (You do not have to use new numbers, just estimate where it would go.)

Answer rating: 100% (QA)

a Reproduced table Labor L Wage Bill Total Resource Cost MRC MRP 100 4000 9000 200 4000 200 4000 8000 300 4000 300 4000 7000 400 4000 400 4000 6000 50... View the full answer