1. Initial Demand and 2. New Output Price 3. Crop Destruction Equilibrium STEP: 1 of 3 The nation of Ectenia has 80 competitive apple orchards, which sell apples at the world price of $2 per apple. The following equations describe the production function and the marginal product of labor in each orchard: 2 = 80L - 12 MPL = 80 - 2L where Q is the number of apples produced in a day, L is the number of workers, and MPL is the marginal product of labor. What is each orchard's labor demand as a function of the daily wage W? O L = 40 - 0.25W O L = 80 - 2W O L = 40 - 0.5W O L = 3,200 - 20W What is the market's labor demand? O L = 40 - 0.25W O L = 3,200 - 0.25W O L = 3,200 - 20W O L = 80 - 20W Ectenia has 1,200 workers who supply their labor inelastically. The equilibrium wage is | $ per worker per day. Each orchard hires workers and makes a profit of $ per day. (Note: Assume that wages are the firm's only costs.)