Question 1 The Apple Pie Factory produces apple pies. The firm sells its product and hires its workers in competitive markets. The market price (p) for a pie is $4 and the wage rate (w) is SIO per hour. The table below shows the total hourly production (Q) for varying amounts of workers (L). (Remember that for a price-taking firm, p = MR.) p MP MRP 4 6 7 8 9 10 11 12 61 66 70 73 75 76 a. Fill in the p and w columns. (12 marks total 6 marks each column) b. Calculate the MP and the MRP for each amount of labour employed. (12 marks total 6 marks each column) c. What is the logic of the firm's profit-maximizing condition for hiring labour? (3 marks) d. How many workers should this profit-maximizing firm hire? Why? (8 marks)