1st question

2. Graphing demand for labor and computing the optimal quantity Consider a company operating in a competitive market. The company sells units of output and receives a price of $30 per unit, and pays a daily market wage of $285 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor Output Marginal Product of Labor Value of the Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) 0 0 16 16 15 31 14 W 45 11 56 CO 64 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) Hint: Remember to plot each point halfway between the two integers, For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. (?) O Demand Market Wage Rate 8 8 5 8 5 8 MiAG E (Dollars per worker) 100 one worker 8 two workers three workers LABOR (Number of workers) four workers five workers The profit-maximizing quantity of labor at the market wage is3. How changes in the goods market affect the demand for labor This exercise examines the effect of a excellent harvest in North Dakota on the price of wheat in the United States and daily wages of wheat harvesters in Kansas. Assume that buyers of wheat have no preference for wheat grown in North Dakota versus Kansas. On the following graph, show the effect the excellent harvest in North Dakota has on the market for wheat in the United States by shifting either the demand curve, the supply curve, or both. Market for Wheat in the United States 10 O Supply Demand co O- Supply PRICE (Dollars per bushel) Demand N 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Millions of bushels of wheat) Based on the graph for the market for wheat in the United States, the excellent harvest has caused the price of wheat in the United States to fall The following graph shows the daily market for wheat pickers in Kansas. riseThe following graph shows the daily market for wheat pickers in Kansas. Show the effect of the change in the price of wheat in the United States on the market for wheat pickers in Kansas by shifting either the demand curve, the supply curve, or both. Market for Wheat Pickers in Kansas O Supply Demand Supply WAGE (Dollars per worker) Demand decreases LABOR (Thousands of workers) increases As a result of the change in the price of wheat, the wage level for wheat pickers in Kansas