4. Profit maximization Consider Blewitt's Farm, a small blueberry grower relative to the size of the market whose production has no impact on wages and prices. The following table presents Blewitt's production schedule for blueberries: Labor Output (Number of workers) (Pounds of blueberries) 0 0 10 N 19 W 27 34 40 Suppose that the market wage for blueberry pickers is $118 per worker per day, and the price of blueberries is $16 per pound. On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $16 per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product of 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. 200 O 180 Demand P = $160;" Demand F = $16 + a g l 120 ~ Demand P = $12 WAGE (Dollars per worker) a g g l l l .p. c: I m c: l l l l l o 1 2 3 4 5 LABOR (Number of workers) At the given wage and price level, Biewltt's should hire V . Suppose that the price of blueberries decreases to $12 per pound, but the wage rate remains at $118. On the previous graph, use the purple points (diamond symbol) to plot Blewirt's labor demand curve when the output price is $12 per pound. Now Blewitt's should hire Y when the output price is $12 per pound. Assuming that all blueberry-producing rms have similar production schedules, a decrease in the price of blueberries will cause the V blueberry pickers to V . Suppose that wages decrease to $100 due to a decreased demand for workers in this market. Assuming that the price of blueberries remains at $12 per pound, Blewitt's will new hire V _