The following chart gives the output (Q) produced by a firm given the number of labor inputs (L). The price of the product is $6.
L | Q | MPL | P | MRPL |
---|---|---|---|---|
0 | 0 | 6 | ||
1 | 12 | |||
2 | 28 | |||
3 | 40 | |||
4 | 48 | |||
5 | 54 | |||
6 | 57 | |||
7 | 59 | |||
8 | 60 |
Fill in the column for MPL (the marginal product of labor).
Fill in the column for P (the product price).
L | Q | MPL | P | MRPL |
---|---|---|---|---|
0 | 0 | 6 | ||
1 | 12 | 12 | ||
2 | 28 | 16 | ||
3 | 40 | 12 | ||
4 | 48 | 8 | ||
5 | 54 | 6 | ||
6 | 57 | 3 | ||
7 | 59 | 2 | ||
8 | 60 | 1 |
Fill in the column for MRPL (the marginal revenue product of labor).
L | Q | MPL | P | MRPL |
---|---|---|---|---|
0 | 0 | 6 | ||
1 | 12 | 12 | 6 | |
2 | 28 | 16 | 6 | |
3 | 40 | 12 | 6 | |
4 | 48 | 8 | 6 | |
5 | 54 | 6 | 6 | |
6 | 57 | 3 | 6 | |
7 | 59 | 2 | 6 | |
8 | 60 | 1 | 6 |
L | Q | MPL | P | MRPL |
---|---|---|---|---|
0 | 0 | 6 | ||
1 | 12 | 12 | 6 | 72 |
2 | 28 | 16 | 6 | 96 |
3 | 40 | 12 | 6 | 72 |
4 | 48 | 8 | 6 | 48 |
5 | 54 | 6 | 6 | 36 |
6 | 57 | 3 | 6 | 18 |
7 | 59 | 2 | 6 | 12 |
8 | 60 | 1 | 6 | 6 |
How many workers should this firm in a perfectly competitive market employ if the wage is $36?
L | Q | MPL | P | MRPL |
---|---|---|---|---|
0 | 0 | 6 | ||
1 | 12 | 12 | 6 | 72 |
2 | 28 | 16 | 6 | 96 |
3 | 40 | 12 | 6 | 72 |
4 | 48 | 8 | 6 | 48 |
5 | 54 | 6 | 6 | 36 |
6 | 57 | 3 | 6 | 18 |
7 | 59 | 2 | 6 | 12 |
8 | 60 | 1 | 6 | 6 |
How many workers should this firm employ in a perfectly competitive market if the wage is $18?
In general, the quantity of labor demanded can be expected to if wages decrease.