Question
Consider the following relationship between the number of workers and the quantity of wheat on a farm. 1 worker leads to 60 units of wheat,
Consider the following relationship between the number of workers and the quantity of wheat on a farm. 1 worker leads to 60 units of wheat, 2 workers to 110 units, 3 workers to 150 units, 4 workers to 180 units, 5 workers to 200 units and 6 workers to 210. The price of wheat is 10 and the marginal cost of labor (salary) is 250. What condition determines the demand for labor and how many workers will the company employ? Now suppose that the demand for wheat is given by P = 12 - Q and the supply of P = Q. How many workers are now employed? Motivate and illustrate.
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