Complete the following labor supply table for a firm hiring labor competitively: LO2

a. Show graphically the labor supply and marginal resource (labor) cost curves for this firm. Are the curves the same or different? If they are different, which one is higher?

b. Plot the labor demand data of question 2 in Chapter 12 on the graph used in part a above. What are the equilibrium wage rate and level of employment?

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Units of Labor Wage Total Labor Rate Cost Marginal Resource (Labor) Cost 0 $14 $ 14 234 14 14 14 S6 5 14 6 14