c. Now redetermine the firm’s demand curve for labour, assuming that it is selling in an imperfectly competitive market and that, although it can sell 17 units at $2.20 per unit, it must lower product price by 5 cents to sell the marginal product of each successive labour unit. Compare this demand curve with that derived in question 2b.

Which curve is more elastic? Explain.

Units Marginal of Total Marginal Product Total revenue labour product product price revenue product 0 0 _____ $2 $_____ $_____ 1 17 _____ 2 _____ _____ 2 31 _____ 2 _____ _____ 3 43 _____ 2 _____ _____ 4 53 _____ 2 _____ _____ 5 60 _____ 2 _____ _____ 6 65 2 _____