8. Use the production data shown here on the left and the labor supply data on the right for a single firm to answer the following questions. Assume that this firm is selling its product for $1 per unit in a perfectly competitive product market.

a. How many workers will this firm choose to employ?

b. What will be its profit-maximizing wage rate?

c. What labor market model do these data best describe?

Transcribed Image Text:

$1 2 3 4 5 Units Total Units of Labor Product of Labor Wage Rate 0 13 0123456 25 34 42 46 48 0123456 6