Exam 5: The Demand for Labor

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. Labor Output 0 0 1 15 2 29 3 42 4 54 5 65 6 75 Price \ 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Price \ 10.00 9.50 9.00 8.50 7.50 6.50 5.50 -Compared to a firm facing D₁,a firm facing demand schedule D₂ but paying the same wage will hire:

are based on the short-run production function in the graph at right. -At labor input Z,labor's:

The contingent work force:

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. 0 0 1 15 2 29 3 42 4 54 5 65 \ 2.20 2.00 1.80 1.60 1.40 1.20 -What are the values of marginal product and the marginal revenue product,respectively,for the fourth worker?