Key symbols: marginal product of labor (MPL) Labor (# of workers) | Output (shov
ID: 1117880 • Letter: K
Question
Key symbols: marginal product of labor (MPL)
Labor (# of workers) | Output (shovels)| MPL 0 |. 0 | — 1 |. 100 | 100 2 | 195 | 95 3 | 275 | 80 4 | 340 | 65 5 | 375 | 30
The first graph below shows the marginal product of labor in the y-axis and the labor (# of workers) is on the x-axis.
Labor (# of workers) | Output (shovels)| MPL 0 |. 0 | — 1 |. 100 | 100 2 | 195 | 95 3 | 275 | 80 4 | 340 | 65 5 | 375 | 30
The first graph below shows the marginal product of labor in the y-axis and the labor (# of workers) is on the x-axis.
The second graph shows the demand for labor for three different prices per shovel.
Given the company’s marginal product of labor (MPL) curve shown on the first graph, line (M, N, or O) on this graph shows Gopher’s demand for labor when the price of a shovel is $1.00, and line (M, N, or O) shows Gooher’s demand for labor when the price of a shovel is $2.00. L100) (3.89 90 worker O o WOrKY /2b 100 40 623
Explanation / Answer
MRPL curve is the demand curve for labor which is also known as derieved demand curve of labor
When P=2 then MRPL curve will be O in the graph.
Thus demand curve for labor is line O in the graph.
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