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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
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: Suppose that the market wage for blueberry pickers is $200 per worker per day, and the price of blueberries is $13 per pound. On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $13 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. Demand P=$13 Demand P=$15 At the given wage and price level, Blewitt's should hire Suppose that the price of blueberries increases to $15 per pound, but the wage rate remains at $200. On the previous graph, use the purple points (diamond symbol) to plot Blewitt's labor demand curve when the output price is $15 per pound. Now Blewitt's should hire when the output price is $15 per pound. Assuming that all blueberry-producing firms have similar production schedules, an increase in the price of blueberries will cause the blueberry pickers to Suppose that wages increase to $250 due to an increased demand for workers in this market. Assuming that the price of blueberries remains at $15 per pound, Blewitt's will now hire
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