Dream Home Builders, a construction company, wants to make a decision on the quantity of labor to be hired. It has already employed 10 workers. Suppose the wage rate for construction workers is $30 per hour. The value of the marginal product of labor of hiring 11, 12, 13, 14, and 15 workers is $70, $62, $48, $27 and $14 per hour respectively.

 

When Droam Home Builders employs 11 workers, it can increase profits by workers. Dream Home Builders oplimizes by employing a total ofworkers. W the market wage changes to $27, Dream Home Builders would the number of workers employed to workers. The curve depicting the value of the marginal product of labor is also the labor curve.