Microeconomics.

Please help me correct my answers based on teachers feedback:

a. the D curve should have similar shape and slope in both graphs (the market D is correct)

e. please revise

Assignment:

Operum is a firm that hires unskilled laborers in a perfectly competitive factor market.

(a) Draw side-by-side graphs for the whole labor market and for Operum. Label the market supply S_L, the market demand D_L, the equilibrium wage W_E, the equilibrium quantity Q_E, the wage paid by Operum W_O, and the quantity hired by Operum Q_O.

(b) Is W_E greater than, equal to, or less than the marginal factor cost of unskilled labor at Q_O? Explain.

(c) The government institutes an effective minimum wage for unskilled labor. Illustrate this on your graphs from part (a). Label the minimum wage W_Min. On the graph for Operum, label the new quantity of unskilled labor employed Q_Min.

(d) Ceteris paribus, how will the minimum wage from part (c) affect the market's demand for unskilled labor and its quantity demanded for unskilled laborwill each increase, decrease, or stay the same? Explain.

(e) Will the minimum wage cause the marginal revenue product of Operum's last worker hired to increase, decrease, or stay the same?

My answers:

a) Operung maket winge whint MC Wo WE wage D ae Gof labor b) marginal Cost OF unskilled labon at Go [ wage paid by operam . In perfect competition each firm is a wage taken & most pay marred brace Labon Marker wage open JM wage we NO ast 0 any labeA) Quantity demanded for unskilled labor will decrease in market, The higher wage resulting from the minimum wage reduces the incentive for firms to hine as many unsirined worlens, leading to a decrease in auamity demanded CJ minimum wage will caus MAP of operum's last wonten highered to say the same . The MAP is determined by the additional revenue Generated by last worked, hined to stay the Same . The MRP is determined by the additional revenue generated by the last worker. The minimum wage doesn't directly affect the marginal revenue generated by each worker, so the MAP remains unchanged. Total recounce cost = wage pen tour. a loDon. 15 + 6- 190 / KA