In the short run, a manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is depicted in the third table:

Derive the firm’s marginal product, marginal revenue product, total wage costs, and marginal factor cost at each level of labor supplied. If the firm sells its output in a perfectly competitive market at which the equilibrium price is $8 per unit, how many workers will it hire, and what hourly wage rate will it pay?

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Labor Supplied 10 11 12 Total Product per hour 100 109 116 Hourly Wage Rate ($) 25 26 27