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Assume the house painting industry is highly competitive on both the input and output side. Assume a firm faces a marginal product curve given below
Assume the house painting industry is highly competitive on both the input and output side. Assume a firm faces a marginal product curve given below and that they generally charge their clients $10 per 25 square feet. MPL=25L a. Determine the marginal revenue product of labor faced by this firm. b. At what wage rate will the firm not want to hire any workers? c. Assume workers were willing to work for free. How many workers would they hire? Why not hire more? d. If the wage rate for house painters is $20 per hour, how many workers should this firm hire? e. Suppose a technological innovation causes the firm's marginal product to change so that MPL=35L. How will this affect the hiring decision of the firm
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