4. KEY QUESTION Complete the following labour supply table for a firm hiring labour competitively:

Total Marginal Units of Wage labour cost resource labour rate (wage bill) (labour) cost 0 $14 $______ 1 14 ______ $______ 2 14 ______ ______ 3 14 ______ ______ 4 14 ______ ______ 5 14 ______ ______ 6 14 ______ ______

a. Show graphically the labour supply and marginal resource (labour) cost curves for this firm. Explain the relationship of these curves to one another.

b. Plot the labour demand data of question 2 in Chapter 14 on the graph used in a.

What are the equilibrium wage rate and level of employment? Explain.