Calculating MRPs for Perfect and Imperfect Competition Be sure to show all work. 1. Suppose Firm A sells its output in a perfectlyI competitive market at a price of $20 per unit. The Firm also hires its labor in a perfectlyI competitive market at a wage rate of $300 per laborer. Complete the table for MPL; and MRP1. t: of laholels Total Product MPh MRPJ MIIP: 1 20 60 95 128 153 168 1?5 170 mummhww a. What is the maximum wage the rm would be willingto pay laborer #4? b. At a wage of $300 per day. how manicr laborers will the firm hire? c. Suppose, due to a lack of popularity, the price ofthe good drops to $10.00 per unit. Calculate the new values for marginal revenue product for the MRP; column d. Given the change in Part C, how many laborers will the firm hire at a wage rate ofSBDD per day? e. ignore the change in product price in part C. Now suppose that a newI technology increases labor productivity- by II] units for each laborer. Would the rm's demand For labor increase or decrease? My? 2. Suppose Firm B sells its output in a monopolistica Iv competitive market. The firm hires its workers in a perfectly competitive labor market at a wage rate ofSBOO per worker. Complete the MP. column in the table below. it of la borers Total Output MPL Price Total Marginal MRP Revenue Revenue 1 20 31.0 2 6|] $9.50 a 95 $9.00 4 125 $8.50 5 140 $8.00 6 150 $7.50 7 155 $7.00 Calculate Total Revenue, Marginal Revenue, and Marginal Revenue Product forthe chart. What is the maximum wage the rm would pay- for la borer 5? Explain wh'gI the firm would not be willing to pa}:I the worker more than that amount. Glaph the MRPJ data for Firm A from Problem #1 and the MRP data for Firm B from this problem on the same graph. On the graph, insert the $300 wage rate a nd idel'itiiI the prot maximizing level of output for each rm. How does the quantity of labor hired differ between the firms