Suppose that labor is the only input used by a perfectly competitive firm that must pay $100 per worker per day, and sells each unit at $10. The firm's production function is given as follows:

A. Complete the table. Plot the firm's demand for labor in a graph.

B. What is profit maximizing hiring point for a competitive firm? How many workers should this firm hire to maximize profit and why?

C. What is the meaning of the Law of Diminishing Return? At which point the law of diminishing return sets in for this firm and why?

No of Total Marginal Marginal Wage Workers Output Product Revenue per of labor Product of labor 0 1 2345 N 6 CO 0 11 23 40 50 59 65 marginal factor cost