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5. Larry's Logging is the only logging company in a small remote town, and Larry's Logging is the only employer of loggers in the area.

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5. Larry's Logging is the only logging company in a small remote town, and Larry's Logging is the only employer of loggers in the area. The graph below shows the market for loggers with the marginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve. 160 Marginal Factor Cost Wage Rate ($) Supply 88 76 64 52 34 Marginal 16 Revenue Product 0 30 60 80 100 120 140 160 210 240 Quantity 200 of Loggers

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