Question: 5: Factor (labor) market: (0.25 for each correct cost value = 3 points total) Dan runs a driver education school. The more driving instructors he


5: Factor (labor) market: (0.25 for each correct cost value = 3 points total) Dan runs a driver education school. The more driving instructors he hires, the more driving lessons he can sell. But because he owns a limited number of training cars, each additional driving instructor adds less to Dan's output of driving lessons. The accompanying table shows Dan's production function per day. Each driving lesson can be sold at $35 per hour. Quantity of labor Quantity of driving MPL Chours par VMPL feel driving (driving Instructorj driving Instructor) NA 15 Determine Dan's labor demand schedule for each of the following daily wage rates for driving instructors: (0.5 point each = 3 points) Daily wage rate Q of Labor (driving instructors) demanded. $160.... $180.. $200.. $220 $240...... .....24:" $260.... .185124
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