3. Computing labor productivity and its relationship to the demand for labor

Gopher Excavators produces shovels in a small factory and sells the shovels in a competitive market. The following table shows the company's production function:

Labor Output (Number of workers) (Shovels) O O 90 N 175 245 4 300 5 325400 O 360 Production Function 320 280 240 200 OUTPUT (Shovels) 160 120 80 40 0 2 3 4 LABOR (Number of workers)\f150 135 M 120 105 90 N 75 WAGE (Dollars per worker) 60 45 OO O O 30 15 O 1 2 3 4 5 LABOR (Number of workers)