Question: Labour Markets 32)A rm uses labour as its only variable input. The table below illustrates the rm's daily production. The daily wage in a perfectly

Labour Markets 32)A rm uses labour as its only variable input.

Labour Markets 32)A rm uses labour as its only variable input. The table below illustrates the rm's daily production. The daily wage in a perfectly competitive labour market is $100 and the price for each unit of output is $2. Determine the number of employees the rm should hire. Labour L _I- -_ .- 33) Suppose a perfectly competitive labour market in equilibrium. The price for each unit of output produced and sold by rms increases from p" to p1. Starting from the initial equilibrium (Lu, W") associated with the price 310, the price increase triggers a) A shift of the demand for labour to the right; b) A shift of the demand for labour to the left; c) A shift of the supply for labour to the right; d) A shift of the supply for labour to the le. 34) Suppose a perfectly competitive labour market where the inverse demand is w = 50 2L and the inverse supply is w = 3L. Determine the equilibrium wage w\". 35) A rm uses labour as its only variable input. Its daily production function is Q = 5151/2 with Q and L representing output and labour, respectively. The price per unit of output is p = 12 and the daily equilibrium wage in a perfectly competitive labour market is w\" = 10. Determine the amount of labour L" that should be hired by the prot-maximizing rm

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