1.Page One, Inc. has the following production schedule:

Number of Workers Number of Reams of Paper Produced

0 0

1 80

2 150

3 210

4 260

5 300

6 330

a.Find the marginal product of labour (MPN) for each level of employment.

b.Page One can get $3 for each ream it produces. How many workers will it hire if the nominal wage is $108? What ifis $162? What if it is $240?

c.Graph the relationship between Page One's labour demand and the nominal wage. How does this graph differ from a labour demand curve? Graph Page One's labour demand curve.

d.With the nominal wage fixed at $240, the price of a ream of paper doubles from $3 to $6. What happens to Page One's labour demand curve and production?

e.With the nominal wage fixed at $240, the price of a ream of paper fixed at $3, the introduction of new machinery doubles the number of reams of paper produced at every level of employment. What happens to labour demand and employment?