2. Units of labour and units of output are given in the following table.

a. Complete the MPL marginal product of labour (MPL) and the value of the marginal product of labour (VMPL1) and complete the columns for each. Assume that the firm sells its products in a competitive market for $20 per unit. If the wage rate is $200, how many workers will this firm hire to maximize its profit? Explain.

Units of Labour	Units of Output	MPL	VMPL1	VMPL2
1	10
2	19
3	27
4	34
5	39
6	42

b. Calculate the VMPL for a unit price of $25 per unit and complete the VMPL2 column with this data. If the wage rate is still $200, how many additional workers will this firm hire to maximize its profit? Explain.

c. What will happen to the demand curve for labour if the price increases from $20 to $25 per unit? Explain.

4. A competitive firm is selling its product. The price for its product is $8.

a. Complete the TC, AFC, AVC, ATC, MC, TR, MR, and profit columns. Round off to two decimal places.

Total product	TFC	TVC	TC	AFC	AVC	ATC	MC	TR	MR	Profit
0	$8	$0
1	$8	$15
2	$8	$20
3	$8	$29
4	$8	$48
5	$8	$83
6	$8	$140
7	$8	$225
8	$8	$344
9	$8	$503
10	$8	$708

b. At what price andoutput level will the above firm maximize its profit or minimize its loss? Should this firm continue to sell in the short run? Should it continue to sell in the long run? Explain.

c. Based on the table, what is the important relationship between ATC and MC? Also, explain why AVC and ATC are U-shaped.