Complete the following table for Terrell's Televisions:

a. From the information in the table, can you determine whether this firm is a price taker or a price maker? Briefly explain.
b. Use the information in the table to draw a graph like Figure 17.1 below that shows the demand for labor by this firm. Be sure to indicate the profit maximizing quantity of labor on your graph.

Transcribed Image Text:

Marginal Marginal Additional Product of Labor Number Output of (television Revenue Profit from Hiring Product Wage of Labor (dollars One More of Televisions sets per Product (dollars week) (MP) Worker per week) (W) Workers per Week (L) (Q) Price (dollars per week) per (P) week) $300 $1,800 300 1 1,800 15 300 1,800 1,800 21 300 26 4 300 1,800 30 300 1,800 33 300 1,800 O 00 Marginal revenue product of labor $1,400 1,200 1,000 800 Demand for labor = Marginal revenue product of labor 600 400 Profit-maximizing quantity of labor 200 F 3 6 Quantity of labor 2.