labor. The first panel of Exhibit 6-2 shows a competitive labor market for a specific type of Exhibit 6-2 Wage rate Wage rate $10 $ 10- 8 8 6 2 0 1 2 3 4 5 Quantity of labor Quantity of labor a. Given the market supply and demand conditions, what is the equilibrium wage rate ? $ 5 Wage Determination and the Allocation of Resources In the second panel, draw the supply of labor curve for a particular firm hiring labor in this market. What is the firm's marginal wage cost? Its average wage cost? C. Table 6-2 contains production data for this firm. Based on the information, it can be seen that this firm sells output in a (competitive/monopolistic) market. Fill in the blanks to find values for the marginal product and marginal revenue product. d. Plot the marginal revenue product relationship on the same graph as the firm's supply of labor curve. When doing so, plot the MRP values at labor unit midway points: L = 0.5, L = 1.5, et cetera. For purposes of this problem, MRP measures the change in revenue from either hiring or firing one more worker. TABLE 6-2 e. If the firm currently employs two workers, is it profitable to hire a L TP third worker? a fourth worker? MP, Price MRP What is the profit-maximizing 10 0 $2.00 level of employment? 2.00 2.00 12 2.00 14 Page 1094 15 2.00 2.00