Question: question is stated below. 1. Computing labor productivity and its relationship to the demandfor labor Gopher Excavators produces shovels in a small factory and sells
question is stated below.






1. Computing labor productivity and its relationship to the demandfor 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) 0 0 1 95 2 185 3 260 4 320 5 355 Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the following graph. 400 360 O Production Function 320 O 280 O 240 200 OUTPUT (Shovels) O 160 120 O 80 40 0 3 5 2 4 LABOR (Number of workers)Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the following graph using the blue points (circle symbol). Note: Remember to plot each point halfway between two integers. For example, when the number of workers increases from O to 1, the MPL of the rst worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. (2) 100 80 MPL 70 60 50 40 MPL (Shovels per worker) 30 20 10 0 1 2 3 4 5 l LABOR (Number of workers) \f135 120 105 M N 75 60 45 O 8 WAGE (Dollars per worker) 30 15 o 2 3 4 5 LABOR (Number of workers) Given the company's marginal product of labor curve shown on the second graph, line 0 V on this graph shows Gopher's demand for labor when the price of a shovel is $0.50, and line V shows Gopher's demand for labor when the price of a shovel is $1.50. 135 M 120 105 8 75 45 WAGE (Dollars per worker) 30 15 0 1 2 3 4 5 LABOR (Number of workers) Given the company's marginal pro bor curve shown on the second graph, line 0 V on this graph shows Gopher's demand for labor when the price of a shovel is $0.50, and line V shows Gopher's demand for labor when the price of a shovel is $1.50
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