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Suppose that the employer is hiring workers in a perfectly competitive market where the market equilibrium wage is $5.

How many workers will be hired at this wage?

Hint


The table below shows data for the production of Oranges for an individual firm operating in an imperfectly competitive market.

Number of workersNumber of OrangesMarginal Revenue
0015
104014
207213
309612
4011211
5012010
Given this data, complete the table:



 Quantity of Oranges  Marginal Product of Labor (MPL) Marginal Revenue Product of Labor (MRPL)
0 - -
10
20
30
40
50


Hint


Suppose that a firm has market power in their output market. Suppose that the employer is hiring workers in a perfectly competitive market where the market equilibrium wage is $17.

The graph below shows the labor demand curve for this firm.

Note: VMPL stands for Value of the Marginal Product of Labor. MRPL stands for Marginal Revenue Product of Labor.

What is the number of workers that this firm will hire if this firm is selling its output in an imperfectly competitive market?

 

Hint


Suppose that a firm DOES NOT have market power in their output market. Suppose that the employer is hiring workers in a perfectly competitive market where the market equilibrium wage is $19.

The graph below shows the labor demand curve for this firm.

Note: VMPL stands for Value of the Marginal Product of Labor. MRPL stands for Marginal Revenue Product of Labor.

What is the number of workers that would be hired if this firm would be selling its output in a perfectly competitive market?

 

Hint


The graph below shows the supply and demand curves for labor in a perfectly competitive market.

What is the equilibrium quantity of workers hired in this market?

thousand

 

Hint


The graph below shows the supply and demand curves for labor in a perfectly competitive market.

What is the equilibrium wage that will prevail in this market?

$

 

Hint