Refer back to the production schedule for the Apple Pie Factory in Question 6. In this question we will derive the firm's demand curve for labour.
a. On a diagram, with MRP on the vertical axis and the number of workers on the horizontal axis, plot the MRP curve.
b. If the wage is $10 per hour, how many workers will be hired? Why?
c. If the wage is $5 per hour, how many workers will be hired? Why?
d. If the wage is $20 per hour, how many workers will be hired? Why?
e. Explain why the MRP curve is the firm's factor demand curve.