6. Plotting the supply of labor In Provo, 135 people are willing to spend an hour working as pizza makers for an hourly wage of $20. For each additional $5 that the wage increases above $20, an additional 45 people are willing to spend an hour working. For hourly wages of $20, $25, $30, $35, and $40, plot the daily labor supply curve for pizza makers on the following graph. (?) 50 15 Supply 40 35 30 WAGE (Dollars perhour) 20 15 10 45 90 135 180 225 270 315 360 405 450 LABOR (Number of workers) What is one explanation for why this labor supply curve is upward sloping? Firms are willing to hire fewer pizza makers at a higher wage. The opportunity cost of leisure decreases as wages decrease. Unemployment benefits are steadily declining. Wages have to increase to accommodate union pressure.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 16 16 15 2 31 14 45 11 4 56 8 5 64On 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. ? 500 O 450 Demand 400 350 300 Market Wage Rate 250 WAGE (Dollars per worker) 200 150 100 one worker 50 two workers 3 three workers LABOR (Number of workers) four workers five workers The profit-maximizing quantity of labor at the market wage is