2. Complete the following labour supply table for a firm hiring labour competitively: [LO17.2]

Units of labour Wage rate Total labour cost Marginal factor

(labour) cost 0 $14 $_____ 1 14 _____ $_____ 2 14 _____ _____ 3 14 _____ _____ 4 14 _____ _____ 5 14 _____ _____ 6 14 _____ _____

a. Show graphically the labour supply and marginal factor

(labour) cost curves for this firm. Are the curves the same or different? If they are different, which one is higher?

b. Plot the labour demand data of Review Question 2 in Chapter 16 on the graph used in part

(a) above. What are the equilibrium wage rate and level of employment?