Due Today at 9:59 PM MST Back to Assignment Attempts Score: V1 1. Labor Demand W

Question

Due Today at 9:59 PM MST Back to Assignment Attempts Score: V1 1. Labor Demand Widgets Suppose the marginal product of labor fora m eh by the tigure found here: https:/drive.google.com/file/d/o8- 9984 VpHz ovBONENIZEhteGM/vvew us Suppose there is perfect competition in the this case, the demand for labor by the frm ecuals 50 45 40 35 market and the labor market and that the output price is $10 and the wage is $350 per hour. In (r hours. Fill in the blank.) 25 20 15 10 MPL Consinue wihout saving 0 02 Hour of Labor d 9 10

Explanation / Answer

Correct option is (4).

Optimal demand for labor is when MPL x Output price = Wage rate

MPL x $10 = $350

MPL = $350 / $10 = 35

From given graph, when MPL = 35, L = 2.

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