Use the graph below to answer the multiple choice questions. Map o Sapling Learn

Question

Use the graph below to answer the multiple choice questions.

Map o Sapling Learning Use the graph below to answer the multiple choice questions 1. How many workers will this firm hire in order to achieve the profit maximizing level of employment when the wage rate is $25 (Wage 1)? 50 45 4 35 30 25 20 15 10 Wage 1 2. How many workers will this firm hire in order to achieve the profit maximizing level of employment when the wage rate is $15 (Wage 2)? Wage 2 3 Marginal revenue product 4 0 1 2 3 456 789 10 Note: This graph is for reference

Explanation / Answer

Answer
Q1
The firm employs labor where marginal revenue product equal to wage.
wage=$25=MRP is at L=3 labors
the firm employs 3 labors
option first
Q2
the firm employs at MRP=wage=$15
where L=5
option third

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